Oil supply to normalize in a week, Shell exec says

Oil companies on Wednesday said the supply of petroleum products in the country is expected to normalize in a week. “Maybe in a week’s time or so. Our estimate is it will be a week," said Edgar Chua, Pilipinas Shell Petroleum Corp. country chairman. Oil firms, however, may hike prices of their products by about P3 per liter in the next few weeks. “At the end of the day, the amount to be recovered will be determined by the market…It’s a combination of recoveries plus the effect on the price this week, and the depreciation of the dollar against the peso. So it will be the market that will dictate this," Chua said. Major oil firms, Petron, Shell and Caltex followed the move of small oil players to increase their pump prices following the lifting of the Executive Order 839, which froze oil pieces in Luzon at their October 15 level, last Tuesday. Despite the lifting of the price freeze, Shell said it would implement an assistance program such as discounts for fuels and LPG, improved customer loyalty program and continued support for social development programs in selected areas in Benguet, Baguio City, Pangasinan, Eastern Laguna, Rizal, Ilocos Norte, Ilocos Sur, Mountain Province, Isabela, Cainta, Marikina City, Malabon and Pasig City pursuant to Executive No. 845. The program, Chua said, would involve at least 44 stations of Shell. Specifically, Shell will give P2 per liter discount on diesel and P1.50 per liter on premium, unleaded and regular gasoline for drivers of public utility vehicles, taxis and tricycles until December 31, 2009. Shell will also give P20 per kilo discount coupon for LPG program for 100,00 Shellane customers, to be distributed through the Department of Social Welfare and Development and will be honored until end-January 2010. Chua also estimated that Shell has wracked up P400-million losses during the implementation of EO 839. The order was lifted last week and replaced by EO 845, which orders oil firms to give assistance to calamity-stricken areas. Earlier, Petron Corp., the country’s largest oil refiner, said about 55 of its retail stations would offer discounts of P2 per liter diesel; P1.50 per liter for kerosene; P1.25 per liter for Premium Gasoline and 85 centavos per liter for Regular Gasoline to all consumers in calamity areas. Petron’s fuel discounts will last until November 30 while automotive and motorcycle oil discounts will be carried out until the end of the year. Flying V, for its part, offered similar initiatives such as providing 30,000 relief packages amounting to P6 million. It also provided assistance to jeepney operators and private car owners. -GMANews.TV