Difference between revisions of "Fuel Prices Philippines"

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{{Fuel Price Factsheet
 
{{Fuel Price Factsheet
 
|Fuel Price Country=Philippines
 
|Fuel Price Country=Philippines
|Fuel Pricing Policies=The downstream fuel market in the Philippines is open and the pricing is liberal. There are about ten major retailing companies.
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|Fuel Pricing Policies="Pricing policy: The downstream petroleum sector was deregulated in 1998. The import duties on crude oil and petroleum products were reduced from 3% to 0% by an executive order in Jun 2010. In Feb 2009, the Department of Energy asked oil companies to explain in writing within 48 hours the justification for price increases, and added that it was checking the dates of the acquisition of the supply, the volume, the value, and the shipment date. On Oct 23, 2009, government imposed price ceilings in response to adverse weather events, forcing oil companies to lower prices back to the Oct 15 level. This led to early closure of some filling stations. The ceilings were lifted on Nov 16, on condition that the oil companies agree to implement discounts and stagger future price increases. Under the label “jump-starting” strategic reserves, the president ordered Philippine National Oil Company-Exploration Corporation, which is 99.8% owned by government, to sell diesel at ₱2–3 (US$0.05–0.07)/liter below the market level starting in Jul 2011.  
  
The Philippine Department of Energy (DoE) monitors fuel prices. DoE publishes information on fuel price composition, up-to-date fuel prices (~every two weeks) and historical fuel price data. Prices are shown for three major areas of the country. Since deregulation of the market in the early 2000s, the DoE gives easy-to-understand information to customers on landed cost of bringing in finished oil products, in order to strengthen the market forces on oil companies.
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Price negotiation: Government in 2003 negotiated voluntary diesel price discounts with oil companies for transport operators, and there were 803 filling stations offering discounts as of Dec 2012. The size of the discount has varied over the years.  
  
"The downstream petroleum sector was deregulated in 1998, although government has negotiated voluntary diesel price discounts with oil companies for transport operators. Import tariffs on crude oil and refined products were reduced from 3% to 0% in May 2010. In Feb 2009, Department Energy asked oil companies to explain in writing within 48 hours the justification for price increases, and added that it was checking the dates of the acquisition of the supply, the volume, the value, and the shipment date. On Oct 23, 2009, government imposed price ceilings in response to adverse weather events, forcing oil companies to lower prices back to the Oct 15 level. This led to early closure of some filling stations. The ceilings were lifted on Nov 16, on condition that the oil companies agree to implement discounts and stagger future price increases. Under the label “jump-starting” strategic reserves, the president ordered Philippine National Oil Company-Exploration Corporation, which is 99.8% owned by government, to sell diesel at ₱2–3 (US$0.05–0.07) a liter below the market level starting in Jul 2011. Department of Energy monitors both wholesale and retail prices, and posts current and historical data on its Web site." (Source: Kojima, Masami. (2013, forthcoming). “Petroleum product pricing and complementary policies:Experience of 65 developing countries since 2009.” Washington DC: World Bank.)
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Compensation: In April 2011, an executive order established a Public Transport Assistance Program and allocated ₱450 million (US$10 million) for compensation using smart cards to registered jeepney and three-wheel drivers. At ₱1,050 (US$24) per jeepney, only 95,000 out of 150,000 cards printed for jeepneys were claimed, enabling the government to offer an additional ₱1,200 (US$28) per vehicle in 2012. Government abandoned a plan for a fuel subsidy scheme for agriculture and fisheries in May 2011, citing difficulties with beneficiary identification.
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Hedging: Philippine Airlines reported fuel-price hedging losses for the financial year ending in March 2009.
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Information: The Department of Energy monitors both wholesale and retail prices, and posts detailed current and historical data by location and company as well as the location of each filling station offering a diesel fuel discount on its Web site."
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(Source: Kojima, Masami. (2013, forthcoming). “Petroleum product pricing and complementary policies:Experience of 65 developing countries since 2009.” Washington DC: World Bank.)
 
|Fuel Currency=PHP
 
|Fuel Currency=PHP
 
|Fuel Price Exchange Rate=43.568
 
|Fuel Price Exchange Rate=43.568
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|Fuel Price Factsheet Source Link=http://www.doe.gov.ph/
 
|Fuel Price Factsheet Source Link=http://www.doe.gov.ph/
 
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[[Category:Philippines]]

Latest revision as of 12:50, 23 September 2014

Part of: GIZ International Fuel Price database
Also see: Philippines Energy Situation

Fuel Pricing Policies

Local Currency: PHP
Exchange Rate: 43.568


(2012/11/17)

Last Update:

"Pricing policy: The downstream petroleum sector was deregulated in 1998. The import duties on crude oil and petroleum products were reduced from 3% to 0% by an executive order in Jun 2010. In Feb 2009, the Department of Energy asked oil companies to explain in writing within 48 hours the justification for price increases, and added that it was checking the dates of the acquisition of the supply, the volume, the value, and the shipment date. On Oct 23, 2009, government imposed price ceilings in response to adverse weather events, forcing oil companies to lower prices back to the Oct 15 level. This led to early closure of some filling stations. The ceilings were lifted on Nov 16, on condition that the oil companies agree to implement discounts and stagger future price increases. Under the label “jump-starting” strategic reserves, the president ordered Philippine National Oil Company-Exploration Corporation, which is 99.8% owned by government, to sell diesel at ₱2–3 (US$0.05–0.07)/liter below the market level starting in Jul 2011.

Price negotiation: Government in 2003 negotiated voluntary diesel price discounts with oil companies for transport operators, and there were 803 filling stations offering discounts as of Dec 2012. The size of the discount has varied over the years.

Compensation: In April 2011, an executive order established a Public Transport Assistance Program and allocated ₱450 million (US$10 million) for compensation using smart cards to registered jeepney and three-wheel drivers. At ₱1,050 (US$24) per jeepney, only 95,000 out of 150,000 cards printed for jeepneys were claimed, enabling the government to offer an additional ₱1,200 (US$28) per vehicle in 2012. Government abandoned a plan for a fuel subsidy scheme for agriculture and fisheries in May 2011, citing difficulties with beneficiary identification. Hedging: Philippine Airlines reported fuel-price hedging losses for the financial year ending in March 2009.

Information: The Department of Energy monitors both wholesale and retail prices, and posts detailed current and historical data by location and company as well as the location of each filling station offering a diesel fuel discount on its Web site."

(Source: Kojima, Masami. (2013, forthcoming). “Petroleum product pricing and complementary policies:Experience of 65 developing countries since 2009.” Washington DC: World Bank.)

Fuel Prices and Trends

Gasoline 95 Octane Diesel
in USD*

in Local Currency

* benchmark lines: green=US price; grey=price in Spain; red=price of Crude Oil



Fuel Price Composition

Price composition for one litre of Gasoline 95 Octane as of 2011/04/20  in Manila.


GIZ IFP2012 Philippines.png


(*Singapore spot market price for 95 octance gasoline)

Operator costs include seaside shipping, inland transportation, storage, service station costs, etc.

VAT is the only tax on fuels as of May 2011.

Source: own calculation based on http://www.doe.gov.ph/OPM/Pricing%20Formula.htm



At a Glance

Regulation-Price-Matrix
Transparency of
Price Composition
Transparency of Pricing
Mechanism / Monitoring
IFPDB matrix background.png
IFPDB matrix point.png
IFPDB trafficlight green.png IFPDB trafficlight explanation.png IFPDB trafficlight green.png



Sources to the Public

Type of Information Web-Link / Source
Other Information http://www.doe.gov.ph/
Price Composition http://www.doe.gov.ph/
Pricing Mechanism http://www.doe.gov.ph/
Pump prices and margins http://www.doe.gov.ph/OPM/Pumpprices.htm
Wholesale Prices http://www.doe.gov.ph/


Contact

Please find more information on GIZ International Fuel Price Database and http://www.giz.de/fuelprices

This is a living document. If you have any comments or suggestions, please feel free to contact us: Armin.Wagner@giz.de

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