GMA ON OIL PRICE FLUCTUATIONS: GRIN AND BEAR IT

MANILA, OCTOBER 10, 2003  (MALAYA) By REGINA BENGCO  - President Arroyo yesterday said Filipinos by now should be used to fluctuations in the prices of oil products, although she said government will try to hold off any fare hikes that could result from the oil price hikes.

Arroyo, in a statement, said: "We have to live with the vagaries of the free market. Oil prices in the country are dependent on world prices so we must learn to get used to price hikes and price rollbacks."

But she said government will "continue to work with the transport sector to keep fare hikes at bay."

Petron, Pilipinas Shell, Total Philippines Corp., and Unioil Petroleum Philippines Inc. have raised their prices by an average of 25 centavos per liter on gasoline, diesel and kerosene products. Caltex yet to increase its prices.

This brings gasoline prices to more than P21 per liter and diesel to more than P16 per liter.

Shell has said that the adjustment represents the higher acquisition cost of crude oil and petroleum products for August.

Petron has claimed that the across-the-board increase reflects crude costs for the last two months. Petron said there was a marked upward trend in crude prices in October since the Organization of Petroleum Exporting Countries (OPEC) announced in late September a cut in its output by 900,000 barrels per day.

The Federation of Jeepney Drivers Association said it will not seek fare hire, expressing satisfaction at the "discounted diesel" on selected gasoline stations in the metropolis.

Zenaida Maranan, president of Fejodap, said they would not file any petition before the Land Transportation Franchising and Regulatory Board despite the latest hike.

Maranan said at least 48 gas stations in Metro Manila have been identified by the Department of Transportation and Communications and the Department of Trade and Industry to give discounts to jeepney drivers.

Maranan said that other gasoline companies that do not give discounts but are listed in the DOTC-DTI list are those that keep their diesel prices at P15.50.

She said that when government withdraws or stops this discount privilege, they would seek a fare adjustment.