SUGAR PRICES SOAR TO P60/KILO IN METRO MANILA
MANILA, JANUARY 25, 2010 (STAR) By Marianne Go - Agriculture Secretary Arthur Yap has directed the Sugar Regulatory Administration (SRA) to submit a new suggested retail price (SRP) for sugar after prices of refined sugar soared to P60 per kilo in several Metro Manila retail outlets.Market monitoring by the Bureau of Agricultural Statistics (BAS) as of Jan. 23 showed that the prevailing price of refined sugar is P52 per kilo while raw or brown sugar sells for P44 per kilo.
“The consuming public should be informed about the SRP for sugar to prevent overpricing by speculators and unscrupulous wholesalers and retailers who are taking advantage of the current sugar situation,” Yap said.
The SRA recommends a weekly SRP for refined sugar based on monitored millgate prices. SRA administrator Rafael Coscolluela said weekly changes in millgate prices do not automatically reflect in the retail market. “Millgate prices change every week, and there is a lag time of three weeks before these prices are reflected in the retail market,” Coscolluela said.
The SRP for refined sugar is P52.00 per kilo until the end of January. It is expected to rise to P54.00 per kilo in the first week of February, reflecting the current millgate price of P1,900 per 50-kilo bag of raw sugar.
“If we impose an SRP which is not reflective of millgate prices, we could see a tightening of sugar supply in the retail market,” Coscolluela said. “We also don’t want to see the public victimized by overpricing.”
To prevent sugar shortage at the end of the milling season, the government has already decided to import up to 150,000 metric tons of sugar at zero tariff through the National Food Authority (NFA).
The sugar tariff would be paid by the NFA’s tax expenditure subsidy (TES).
“We are waiting for the Executive Order that will authorize NFA to undertake the sugar importation,” Yap said.
Oil firms cut pump prices By Donnabelle Gatdula (The Philippine Star) Updated January 25, 2010 12:00 AM
MANILA, Philippines - Pilipinas Shell Petroleum Corp., Eastern Petroleum Corp., Flying V and Phoenix Petroleum Philippines rolled back the price of their pump products effective today.
The oil companies reduced the price of their diesel and kerosene products by P1 per liter and their gasoline by 50 centavos.
The oil price cut was an offshoot of the drop in international oil prices.
Department of Energy (DOE) data said petroleum prices started falling since last Tuesday, Jan. 12 as temperatures warmed.
This was also followed by the announcement of China that it would try to cool bank lending.
An Energy Information Administration report of swollen crude oil supply by 3.7 million barrels, well above the average for this time of the year, pushed prices even lower Wednesday.
Week-on-week average price of Dubai crude was lower by about $.50 per barrel than last week.
On the other hand, the price of gasoline increased more than a dollar contrary to that of diesel, which declined by about $0.50 per barrel.
Domestic pump prices are expected to further go down once Executive Order 850 lowering the tariff on imported petroleum products in the ASEAN region to zero percent is implemented.
DOE earlier estimated that the impact of the EO on local pump prices would be a reduction of 70 centavos per liter.
Flying V raises pump prices by P1 per liter (The Philippine Star) Updated January 12, 2010 12:00 AM
MANILA, Philippines - Flying V, the oil firm run by the Villavicencio family, raised its pump prices by P1 per liter to reflect the increase in world oil prices.
Dubai crude, benchmark of oil refiners, has gone up to $80 per barrel as of Jan. 5, from $75 per barrel last month. Unleaded gasoline imported from the region went up to $89 per barrel from $82 last month.
Imported diesel also went up to $88 from $82 per barrel.
Global oil prices have been going up due to the strong demand from Asia.
Joey Cruz, Flying V spokesman, said the latest price adjustment did not yet take into consideration the 70 centavos supposed price cut due to Executive Order 850, which brought down the tariff on imported petroleum products to zero percent.
“We have yet to reflect the benefit from the tariff reduction. The tariff cut took effect Jan. 1 and we have not imported after Jan. 1,” he said.
Cruz said the EO will only affect their prices once they start importing petroleum products.
They have tempered their price hike a little bit when they are supposed to jack their prices by P1.20 per liter, he added.
Flying V would follow if other oil firms adopt the 70-centavo cut on imported fuel, Cruz said.
As of press time, only Flying V was adjusting its prices.
Based on Department of Energy data, unleaded gasoline is sold at local pumps at a range of P41.30 to P45.52, while diesel is priced at P32.75 to P35.50 depending on the station, brand and market forces.
Last week, Energy Secretary Angelo Reyes announced that EO 850 would trigger a 70-centavo cut on local pump prices.
“We have good news,” he said.
“The President has issued an executive order reducing the tariff from three percent to zero.
“The effect of the EO on the pump price is 70 centavos per liter, so we should see the effect next week.
“So whatever the price will be next week, there will be a reduction of 70 centavos to conform with the EO.”
The EO was signed last Dec. 23 and took effect last Jan. 1.
It brings down tariffs of nearly all remaining goods sourced from the Association of Southeast Asian Nations (ASEAN) to zero percent. – Donnabelle Gatdula
Chief News Editor: Sol Jose Vanzi
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