Reaction Paper

Dave Ian Liang

IT4B

By Marie S. Neri

Two independent oil players raised prices of their petroleum products by P1 per liter as a result of hikes in crude prices in the international market.

Phoenix Petroleum said the P1 per liter hike in the price of diesel, gasoline and kerosene would take effect at 12:01 a.m. Wednesday.

Seaoil, on the other hand, enforced the price adjustment since 6 a.m. Tuesday.

As of Jan. 8 Dubai crude was pegged at US$ 80 per barrel, higher than the US$ 75 per barrel average for the month of December.

Unleaded gasoline also hit US$ 89 per barrel this month as compared to US$ 82 per barrel last month while diesel reached US$ 88 per barrel as against the US$ 82 per barrel in December.

Price surveillance conducted by the Department of Energy showed that unleaded gasoline are sold between P41 and P45 per liter, diesel at P32 to P35 per liter and kerosene at P40 to P45 per liter.

Flying V, one of the country’s leading independent oil player was the first to implement the price adjustment.

Other oil companies including oil giant Pilipinas Shell Petroleum Corp., Petron Corp., and Chevron Philippines are expected to follow suit. (PNA) (source: http://www.newsbalita.com/oil-price-increase-in-the-philippines/)

The increase of oil price after the year of 2010 would cause more suffering for those who drive public utility vehicle and as for private vehicle owners. This coming year 2011 the people would have a hard time budgeting for buying diesel for their vehicle. I feel unhappy and irritated because of the increase of diesel oil price it becomes more expensive and instead the public utility vehicles can have their extra income in transporting their passengers, but now their extra income are consumed in buying diesel to continuously transport their passengers, thus the price of the diesel oil increase added with the value added tax (VAT) it makes the oil price expensive for those public utility vehicle drivers.