Eastern Petroleum Corp chairman, Fernando Martinez, was quick to point out, “If the upward trend continues and if the peso will not stabilise, we will have no choice but to adjust prices again within the next two weeks.”

Martinez – who is also chairman of the Independent Philippine Petroleum Companies Association – puts the blame entirely on world oil prices and the falling peso. “This will not happen if world oil prices soften and foreign exchange rate stabilises. If this will be the case, our supposed increase for the month will be offset,” he said.

This view is being challenged, however, by Consumer Oil Price Watch chairman, Raul T. Concepcion, who said, “The oil refiners have already recovered their undercovery for the month of October [and] based on COPW calculations, the refiners will need to recover 46 centavos in November.”

“They have already raised their prices by 40 centavos in Nov. 5, which was earlier than the supposed implementation of the oil price hike which should be in the third week of November. This means, they should not be recovering the six centavos anymore because of the early price adjustment,” said Concepcion.

He has a further beef with the oil companies for “claiming that they have not yet been inputting the impact of the new diesel specifications under the Clean Air Act (CAA) to their prices”.

According to Concepcion, the formula given to him by the oil companies does not add up. “They should explain to the consumers why their prices are going up and yet claim that they are not yet reflecting the CAA impact on their prices,” he said.

The impact of the new diesel specification on oil prices will range from 20 to 50 centavos per litre.