TV 5 NEWS: Lawmaker urges commercial sector to leverage fuel price slump in keeping prices low
MANILA, Philippines -- With the continuous slump in the prices of fuel, manufacturers should take the initiative of lowering the price tag on prime commodities and basic goods, a partylist lawmaker said Thursday.
"A downward correction in consumer prices is only fair and reasonable, considering that fuel prices have nosedived," LPG-MA partylist Representative Arnel Ty said in a statement.
Citing statistics from the Department of Energy (DOE), Ty said diesel pump prices as of December 4 ranged from P33 to P36 per liter, down 22 percent from P42 to P46 per liter a year ago.
"The immediate positive impact is substantially lower electricity as well as transportation costs, which in turn should provide manufacturers greater leeway to reduce their selling prices," he said.
"It is only right that ordinary consumers start to directly benefit from the plunge in fuel prices," he added.
The lawmaker said he sees world crude oil prices continuing to decline in 2015, owing to a big glut in supply along with sluggish demand.
"There is a flood of oil, while Europe and China are consuming less fuel due to the slowdown in their manufacturing activities," he said.
World crude oil prices are now hovering around $65 per barrel, down some 40 percent since June.
"In fact, there are forecasts that prices will drop as low as $43 to $48 per barrel by the second or third quarter next year," Ty said.