The Manila Times: Malacañang sees silver lining in oil price hike: “increase in the prices of oil in the world market was mainly due to the increasing demand for fuel in the expanding economies of China, Japan, United States and Europe.” (ShellNews.net)
By Ma. Theresa Torres, Reporter
Monday 2 August 2004
ALTHOUGH Malacañang admitted Sunday it could not do anything about the continued rise in oil prices, it said the increased foreign demand for crude oil which is pushing its prices up could be a boon to Philippine economy in terms of higher exports and more jobs.
This is the “silver lining” Palace managed to see in the recent wave of price increases in world crude.
The President’s deputy spokesman, Ricardo Saludo, said the increase in the prices of oil in the world market was mainly due to the increasing demand for fuel in the expanding economies of China, Japan, United States and Europe.
“We have no control over the continued increase of prices of petroleum products. Other countries like China, Japan and the United States and Europe have increased their demand for oil. Oil-producing countries have reached their maximum production capacity and probably have difficulty in meeting the demand, thus the prices have increased,” Saludo explained.
But Saludo pointed out that the oil price rise is but one negative effect of an expanding world economy.
He said a more improved world economy could work to the advantage of countries like the Philippines.
“Our exports will increase. Some industries will get stronger, thus more jobs will be generated,” Saludo said.
On Saturday Caltex Philippines Inc., Eastern Petroleum Corp., Flying V, Pilipinas Shell Petroleum Corp. and Seaoil Philippines Inc. announced they would increase petroleum prices by 50 centavos a liter for gasoline, diesel and kerosene.
The latest round of oil price hikes took effect midnight of Sunday, except for Flying V, which is set to raise its own prices at midnight of Monday.
Oil firms attributed the latest oil price hike to the continuous increase in international prices of finished petroleum products that have reached a record 21-year high.
Early this week, finished petroleum product prices at the Mean of Platts Singapore rose to about $47.95 a barrel, up from last month’s average of about $45.20 a barrel for unleaded gasoline.
Diesel also rose to $49 a barrel, from about $42.80 a barrel last month.
Oil benchmark Dubai crude, on the other hand, traded at $35.24 a barrel, up from last month’s average of $33.43 a barrel.
http://www.manilatimes.net/national/2004/aug/02/yehey/top_stories/20040802top5.html