DOE: Oil firms cannot hike prices this weekend

MANILA, Philippines – The Department of Energy (DOE) on Wednesday assured consumers that oil firms cannot increase their pump prices in the coming weekend even as the price of the Dubai crude shot up from $86.49 per barrel to $94.87 earlier in the week. In an interview over dzBB, Zenaida Monzada, Director of DOE’s Oil Management Industry Bureau, said that the current stocks of oil companies were bought before the oil price hike. “Definintely walang increase dito sa weekend na ito at hindi pwedeng gawing dahilan ng sinuman na tumaaas ang presyo sa international market nang ganoon kalaki (Definitely, oil prices will not increase this weekend on the pretext that oil prices in the international market increased)," Monzada said. Monzada, however, said the DOE cannot provide a forecast on the movement of oil prices for the coming months, citing the volatility of Dubai crude rates during the past days. “Actually hindi rin natin masabi in the next few months dahil isa nga o dalawang araw grabe na [ang pagbabago] (Actually, we cannot predict what will happen in the next few months because a lot of changes happen everyday)," Monzada said. “Next week siguro, short term lang ang ating maiko-comment dahil walang may alam ng condition sa international market (Probably next week, we can only give a short-term forecast because no one knows the exact conditions in the international market)," Monzada added. The official also said the Philippines , along with other Southeast Asian nations, may venture into stockpiling to cushion itself from the effects of future oil price hikes in the world market. “Actually, tinitingnan natin yan for energy-security reasons… There are ongoing discussions now, dahil yun (stockpiling) ang gustong maging direction ng ASEAN countries - very dependent tayo sa imports sa Middle East. We [Southeast Asian counties] to have a stockpile for the region para maalalayan tayo dito sa pagtaas ng presyo. We will have a first roadmap for stock-piling [last] November (We are looking into stockpiling for energy security reasons. There are ongoing discussions now among Southeast Asian nations who are very dependent on oil imports from the Middle East . We have to stock-pile for the region to protect ourselves from oil price hikes. We will have a first roadmap for stockpiling on November)," Monzada said. Earlier in the day, Raul Concepcion of the Consumer and Oil Price Watch echoed the same sentiments, urging oil firms to go forward-buying or to buy petroleum products in advance to take advantage of the current rate of the Dubai crude before it shoots up during the fourth quarter of 2008. “You (oil firms) buy ahead," Concepcion said, noting that the demand for oil will increase starting October. For his part, financial analyst Astro del Castillo said that pump prices may be augmented due to speculative buying. “Kinapos ang supply dahil sa speculation. In terms of demand, medyo tumaas. But in terms of consumption, di pa naman talaga nagkakaroon ng taas. Dahil sa speculation lang. (Supply was cut short because of speculation. Demand has also increased. But in terms of consumption, there was really no significant increase)," del Castillo said in another interview. - Sophia Dedace, GMANews.TV