Question & AnswerQ&A (ERB Resolution NO. 98-05)
ERB Resolution No. 98-05 addresses the selling prices of petroleum products, rationalizing wholesale and retail prices based on changes in crude oil costs and other related factors.
The Automatic Pricing Mechanism (APM) formula based on the Dubai crude landed cost was approved to determine wholesale posted prices of petroleum products.
The average FOB cost of Dubai crude decreased from US$13.84 to US$12.62 per barrel, resulting in a price reduction of 0.5663 Pesos per liter based on currency exchange adjustments.
The OPSF contribution refers to a fund aimed at stabilizing oil prices; the resolution called for zeroing out the current claims or contributions to this fund to reflect actual price costs.
The resolution rationalizes transshipment rates to reflect the rates charged before the Supreme Court declared R.A. No. 8180 unconstitutional.
All petroleum entities such as oil companies, gasoline station operators, and dealers are required to comply with the prices and directives in the resolution.
PPD and CTD are price adjustments previously authorized for depot establishment and depot operation costs. These amounts accrue to the oil companies.
Wharfage fees are borne by oil companies and cannot be charged to dealers. Water hauling rates are fixed at P0.1140 per liter, and the maximum pumping charge for fuel oil is set at P0.02 per liter.
The retail prices include distinct prices for pump sales, ambulant resellers, and sari-sari stores, with specified handling charges differing by area (Metro Manila vs. outside Metro Manila).
The adjusted prices for petroleum products under this resolution took effect on March 13, 1998, and are mandatory for all relevant petroleum sellers.