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Toyota’s Best Practices bag Gold awards

TOYOTA MOTOR PHILIPPINES Corp. (TMP) was bestowed Gold awards in the recently held Quality Circle Regional Convention (QCRC).The event was organized by the Quality Circle Practitioners Association, Inc. (QCPA), a nonstock, nonprofit organization which promotes the importance of quality management practices and continuous quality improvement.

This year, TMP was represented by two of its best quality circles — The Minions 2 and The Fixer. Under the Non-production category, The Minions 2 shared its best quality practice on improving workplace safety, efficiency and ergonomics. Under the Production category, The Fixer shared about implemented improvements in the process flow and efficiency of installing doors to the car body at the metal finishing line.

Both The Minions 2 and The Fixer were awarded with plaque and medals. TMP has been consistently receiving recognition for its best quality practices since it started joining the QCRC in 2006. In photo are members of The Minions 2 receiving their plaque of recognition from QCPA President Michael Domagas (2nd from left).

Market to remain cautious in wake of Friday gains

LOCAL SHARES may not have enough impetus to sustain last Friday’s gains, with developments in the Sino-US trade row expected to remain top of mind for investors.

After a fluctuating performance as investors awaited development on US-China trade talks last week, the Philippine Stock Exchange index (PSEi) gained 84.91 points or 1.09% on Friday to close at 7,849.94. Investors abroad, however, turned bearish, ending the day with P233.69 million in net foreign sales.

The main index closed the Oct. 7-11 trading period up by 1.89%, capping three straight weeks of decline.

Value turnover last week reached P36.54 billion, but trading volume was fueled by new listed firms Axelum Resources Corp. (9.93 million) and AllHome Corp. (29.71 million).

Integrated coconut products manufacturer Axelum made its trading debut last Monday, ending the week down 1 centavo or 0.22% to P4.50 apiece, while Villar-led home retailer AllHome also made its market foray on Thursday, closing Friday down 2 centavos or 0.17% to P11.54 apiece.

“The gains that we saw this week canceled out all the losses that we have seen in the last two weeks. Here at the PSE, a lot happened as we had two new companies list on the exchange… The main index ended with its biggest weekly gain since May,” AAA Southeast Equities, Inc. Research Head Christopher John Mangun said in a market report.

He said that Friday’s rally kept the PSEi above the 7,750 support line, and is now watching whether it can break above 8,000. “Sellers may have walked away (last) week, except on Axelum, but we may see them come back once it hits 8,000,” Mr. Mangun said.

While US-China trade talks last week yielded some gains — with US President Donald Trump suspending a planned tariff hike and outlining the first phase of a deal that could end their trade war — Mr. Mangun warned that any resulting market cheer may be fleeting and may not be enough to sustain a lift this week. “The optimism on the trade talks with the US may be short-lived which means we may see the sentiment go sour again in the coming weeks. Investors are still trading on sentiment and, because of this, we may not see a solid rally moving forward,” he said.

For Papa Securities Corp. Sales Associate Gabriel Jose F. Perez, any development in trade talks between the world’s two biggest economies will be the primary driver of the local stock market for some time in the absence of any compelling local news. “Moves next week would likely be swayed by any developments in Trump and the Chinese vice-premier’s meeting soon,” he said in an e-mail Friday. “Resistance is only a few points away at the 7,900-8,000 mark.”

Mr. Mangun remains cautious, saying: “We do not think that the gains (last) week are enough to bring investors completely back into this market. These may be investors that are bargain-hunting as most stocks are at incredibly strong support levels.” — Denise A. Valdez

Some good stuff and a dud

By Zsarlene B. Chua
Reporter

Make-up Review
Shiseido Synchro Skin Self-Refreshing Foundation
Amway Artistry Studio Bangkok Collection
Avon’s True Power Stay 16-Hour Matte Lip Color

It’s been a while since I’ve done a makeup review because I am a creature of habit — while I do enjoy new things, I do tend to gravitate towards my usual system so for a product to replace one that is in my existing routine, it has to be good and it has to be consistent. Here are products from three brands: Shiseido, Avon, Amway Artistry Studio that wormed their way into my current regimen and some that I have to pass on.

But first, full disclosure: this writer loves skincare more than makeup and a regular makeup day would consist of a light base, blush, and lip color though I do have my moments when I want to go full glam, they are rare but they’re there.

With that out of the way, let’s talk about foundation. I recently got my hands on the new Shiseido Synchro Skin Self-Refreshing Foundation with SPF 35 PA++++ (P3,000 for 30 ml). The name is a mouthful and the claims are as well as this foundation is said to give a “lightweight… breathable, and buildable coverage for a full 24 hours,” according to a company release.

“It’s crease-proof, sweatproof, and doesn’t settle on lines,” Shiseido Philippine general manager Jen Yalung told BusinessWorld during the product’s launch in September. She said that it has a natural finish (not too dewy and not too matte) which is perfect for all skin types.

My skin currently rotates between dry and normal and because of it, I have always preferred natural, lightweight finishes than full coverage mattes because my skin needs its hydration and it suffocates under heavy layers leading to breakouts. So when I head the claims, I was immediately intrigued and put it to test the next day.

I have been using the foundation on and off for the better part of the month and on the days that I wore the Shiseido foundation, I felt I was having a very good makeup day. It blurred my pores and didn’t settle into the fine lines around my mouth. It didn’t crease and I almost never needed to powder halfway through the day. Did I love it? Yes, I did! It didn’t feel like I was wearing anything — it was that lightweight — and it stayed on a 12-hour workday.

Oh, and despite the claims that it will last for 24 hours, please be kind to your skin and wash it off at the end of the day.

As Shiseido is a luxury brand, the price point is as expected, and I do believe it can last pretty long as I can get by with just a pump of product for every application.

AMWAY ARTISTRY STUDIO BANGKOK EDITION
Back in February, Amway Artistry Studio released its Paris collection featuring lip and cheek stains which I loved, and an eyeshadow palette that I wasn’t that crazy over but still use occasionally. In September, it launched the follow-up, this time inspired by the bold colors of Bangkok.

The collection features a 2-in-1 Matte Lip Crayon in four shades (P1,080), an on-the-go face palette (P2,085), Kajal eyeliner in two shades (P1,080), shimmering cream eyeshadow in three shades (P1,265), and a mascara primer (P1,005). I would have to say that I enjoyed this collection more than Paris, especially the matte lip crayons.

I got two shades of the lipsticks — Spiced Goddess, which is a perfect my-lips-but-better-shade in brick red shade; and Rose Goddess which is mauve with gold glitter — and I loved both of them. Spiced Goddess is the perfect everyday color while the Rose Goddess is for when you’re feeling a bit fancier. Both last for a long time and can withstand a moderately oily meal (though I suggest you reapply). Since it’s a matte, it can be quite drying so put on a lip balm first before going to town with it. I also found that the Rose Goddess has a drier formula.

The on-the-go palette also got a ton of use over the past few weeks, especially the blushes — a coral and a pink one with glitter. I’ve been using it every day, with the pink one being used more often because it’s similar to the legendary Nars Orgasm blush — it lends subtle color and glow to your skin.

The eyeliner I got in Gilded Amethyst and Emerald Garden. I never touched the Emerald Garden because it felt too crazy for me but I did enjoy the amethyst: it is violet enough that it becomes the highlight of your look but is not gaudy. It also stays for a long time despite my often sweaty lids.

The one product I wasn’t too crazy about was the cream eyeshadow because it requires a bit of a learning curve to apply. During the launch last month, it was suggested to apply it using one’s fingers for more payoff but it never quite worked with me and I was left with glittery stained hands.

NOT QUITE RIGHT
Okay, of the things I reviewed in this article, Avon’s True Power Stay 16-Hour Matte Lip Color (P299 for 7ml) is the only one that I really didn’t like. It wasn’t that bad but since I’ve had better at a similar price point, I don’t see the value of using it.

It claims to last for 16-hours without retouching and is transfer-proof but in my experience — and the collective experience of a couple of editors who tried some of the shades — it never delivered on its promises.

It comes in eight shades from nudes to purples and I tried Relentless Rose which is a rosy pink shade, and Non-stop Nude, a brownish nude, for a couple of weeks and was not impressed.

For one, it doesn’t last long — it rubbed off after one meal and what was left behind was a cracked mess that settled into the lines of my lips which is never a good look. It also took a while to dry down.

I previously used Maybelline Superstay Matte Ink Liquid Lip (P249 for 5ml) and it makes similar claims — lasting 16 hours and all that — and it delivered. In fact, it was so hard to remove I had to exfoliate my lips just to get it off.

So, a word of caution, if you have dry lips, stay away from this Avon lip product. There are better options out there.

DMCI Homes completes construction of Taguig condominium

DMCI HOMES has completed a condominium project in Taguig City 10 months ahead of its July 2020 deadline.

DMCI Homes operator DMCI Project Developers, Inc. said in a statement late Friday it is now done with the construction works for its Maple Place residential condominium project in Acacia Estates, Taguig City.

“DMCI Homes declared the completion of the Boutique Hotel architecture-inspired project following the delivery of the last structure in the three-building mid-rise development, Spruce, last month,” it said.

The other two buildings of the 1.23-hectare Maple Place in Taguig City were also completed earlier this year.

DMCI reported in June it had already finished 10 condominium projects in the first half of the year, namely: Alea Residences’ Darma and Surya buildings in Bacoor City, Cavite; Torre De Manila in Manila; Zebrina building of Calathea Place in Parañaque City; Bluebird building of Bristle Ridge in Baguio City; and Fairway Terraces in Pasay City.

Completing the 10 are the Linden and Aspen buildings of Maple Place and the Adelfa and Abaca buildings of Ivory Wood, both mid-rise projects located in Acacia Estates, Taguig City.

DMCI Homes is allocating P17.9 billion for capital expenditures this year, 23% up from a year ago, as it wants to take on an aggressive expansion in and out of Metro Manila to reach Cebu and Davao.

The company booked a core net income of P1.19 billion in the first half, up 5% from a year ago, due to lower project development costs.

Its parent, diversified engineering conglomerate DMCI Holdings, Inc., meanwhile dropped 22% to a net income of P6.7 billion due to weaker revenues from its coal mining and nickel mining businesses. — Denise A. Valdez

AUB gets second-highest rating

ASIA UNITED Bank Corp. (AUB) was awarded the second-highest credit rating by a local debt watcher due to its continuous profitability and strong management support.

The listed bank received a PRS Aa plus (corp.) credit rating with a stable outlook from Philippine Rating Services Corp. (PhilRatings), based on a statement by the latter over the weekend.

The PRS Aa rating means AUB only differs “to a small degree” versus those rated the top “PRS Aaa” rating, and the “plus” means it is further qualified. Having a stable outlook also means its credit rating may likely hold for the next 12 months.

“The issuer rating takes into account AUB’s: a) highly-experienced management; b) competitive strategy, which is in line with its growth targets; c) its robust profitability, backed by sound management of expenses and continuous growth in interest income; and d) satisfactory funding profile,” PhilRatings said.

It added it also considered the favorable outlook of the banking industry despite the generally slower growth of the domestic economy.

PhilRatings said the bank’s chairman and chief executive officer, Abraham T. Co, has multiple years of experience in the banking and finance sector, making him a trustworthy leader of the company. AUB President Manuel A. Gomez was also noted for his two decades worth of experience in the industry.

AUB’s balance sheet was commended by the debt watcher, saying the bank’s deposits accounted for 92.6% of its total liabilities last year. The share of current and savings accounts (CASA) to total deposits also ended at 75% in 2018.

“Forecast shows that CASA will continue to comprise bulk of the bank’s deposits, going forward,” it said.

The bank’s financial results in the first half of the year was also accounted for by PhilRatings. It said the 63.3% rise in its net income to P2.6 billion in the six months to June reflects the company’s continuous profitability. It also recorded a 25.1% increase in net interest income to P4.5 billion and 68.4% jump in other operating income to P1.5 billion during the same period.

“Over the projected period, AUB is well-positioned to sustain its performance as interest income will remain the primary growth driver, as the bank intensifies its commercial and consumer lending activities,” the debt watcher said.

“AUB will continue to anchor its competitive strategy on its modern technology platform, expanding branch network, and highly-experienced management team,” it added. — Denise A. Valdez

China buys more US soybeans, record volume of pork ahead of trade talks

CHICAGO — Chinese importers stepped up purchases of U.S. agricultural goods ahead of high-level trade talks in Washington, including another wave of soybean deals and the country’s record largest weekly purchase of American pork, U.S. data showed on Thursday.

Private exporters sold 398,000 tonnes of U.S. soybeans to China, the Department of Agriculture (USDA) reported via its daily sales reporting system that tracks large purchases. It was the second daily “flash sale” of soybeans this week to the world’s top soybean importer.

USDA also confirmed a net 1.18 million tonnes in soybean sales to China in the week ended Oct. 3 and record-large sales of pork, including 18,810 tonnes for shipment this year and 123,362 tonnes for shipment in 2020.

The flurry of deals came ahead of high-level US-China trade talks in Washington that started on Thursday aimed at ending a 15-month trade war that has rattled global markets and slashed US farm product exports to the world’s top commodities importer.

US pork sales to China, the world’s biggest hog and pork market, had been largely disappointing this year following forecasts for massive purchases. Chinese domestic prices are soaring as the deadly African swine fever virus has decimated the country’s hog herd, tightening supplies of China’s favorite meat.

“Nobody’s ever seen these kinds of (pork sales) numbers,” said Bob Brown, an independent US livestock analyst. “Our prices right now are pretty modest especially compared to Europe in particular, which is their other big supplier.”

China has imposed steep tariffs on imports of American pork in retaliation for US duties on Chinese goods, but US prices still look attractive despite the current 72% tariff, traders said.

US soybean sales have also accelerated ahead of the talks in Washington this week in at least four waves of active buying since early September. Beijing awarded some importers waivers to buy US beans that allow imports without steep retaliatory tariffs. China imported more than 13 million tonnes of US soy in the 2018/19 marketing year that ended Aug. 31 and has bought nearly 5 million tonnes more in the current season, according to USDA data.

The sales, however, are far short of the 30 million tonnes or more that China imported annually from the United States before the trade war. — Reuters

How PSEi member stocks performed — October 11, 2019

Here’s a quick glance at how PSEi stocks fared on Friday, October 11, 2019.

 

POGO tax compliance improving in September

THE Bureau of Internal Revenue (BIR) said it expects tax collections from Philippine Offshore Gaming Operators (POGO) to increase further following the closure of the first firm found to be evading taxes.

Deputy Commissioner for Operations Arnel SD. Guballa said withholding tax collections grew to P1.6 billion as of August, rising about P200 million from the P1.4 billion initially reported initial report. September totals will only be released this month but Mr. Guballa said an improvement is already apparent.

“Our collection is improving because they know that we’re doing enforcement. Kasi sabi ko nag-lapse na yung dialogue with them (the time for dialogue has lapsed). We sent them notices and they are not complying, so we did the raid,” Mr. Guballa told reporters last week.

Citing data collected from PAGCOR and other agencies, he said the official count of foreign workers is 108,914, in 218 POGO offices across the country.

He also said the BIR has seen more compliance in withholding taxes remittance by the industry after the shutdown of Great Empire Gaming and Amusement Corp. (GEGAC).

Days after the closure, BIR lifted GEGAC’s suspension after it agreed to settle a total of P1.3 billion within the year and assured that it will comply with registration requirements as well as withhold taxes from its foreign workers.

BIR Commissioner Caesar R. Dulay said that he expects POGO firms to voluntarily comply and should not wait to be closed down.

Finance Secretary Carlos G. Dominguez III said BIR’s tax enforcement efforts will ultimately help other agencies such as the Bureau of Immigration and the Department of Labor and Employment (DoLE).

“You know, the work of BIR is going to help PAGCOR, it’s going to help the Bureau of Immigration, its going to help DoLE,” Mr. Dominguez said.

Mr. Dominguez has estimated foregone revenue from POGO non-compliance at about P2 billion a month for every 100,000 POGO workers left unregistered, based on uncollected withholding taxes on their salaries. — Beatrice M. Laforga

DTI’s worst case for CITIRA job losses is 900,000

A TRADE official said his worst-case scenario for job losses resulting from incentive rationalization is 900,000, assuming a 100% pullout of manufacturing locators from economic zones.

The job loss estimate, based on the scenario of a total manufacturing investor pullout, is 200,000 more than the projection of the Joint Foreign Chambers in the event incentives are rationalized under the proposed Corporate Income Tax and Incentives Rationalization Act (CITIRA), in its current form.

The Department of Finance (DoF) said in late September that CITIRA will ultimately create 1.5 million new jobs due to its corporate tax-reduction provisions, which it said will encourage expansion.

The large variance in estimates reflects the contentious nature of CITIRA, with the Philippine Economic Zone Authority (PEZA) waging what amounts to be a rearguard action against the legislation. PEZA regulates economic zones and the grant of incentives and counts locators as its main constituency.

Trade Assistant Secretary Angelo B. Taningco made his projection at a technical working group hearing on Oct. 10, acknowledging that CITIRA will likely lead to job displacement.

“Assuming a hundred percent pull-out of manufacturing firms, under PEZA, this could lead around 900,000 job losses,” Mr. Taningco told the Senate Ways and Means TWG panel.

Mr. Taningco said a semiconductor company, which he did not identify, projected a 20% head count reduction upon enactment of the bill.

“Just an example, one semiconductor company that has 220,000 employees would estimate labor displacement of about 20% or around 4,400 workers, given the expected effect of the CITIRA to their operating profit,” he said.

Mr. Taningco said the contentious provisions include the transfer of the functions of the Investment Promotions Agencies (IPA) to the Fiscal Incentives Review Board (FIRB), removal of the 5% gross on income earned (GIE)-and limiting the availment period for income tax holidays to five years.

As such, the Department of Trade and Industry (DTI) proposed amendments to the current version of the CITIRA legislation in order to mitigate job losses and attract investment.

The DTI recommends the retention of the incentive-granting functions of the IPAs, such as PEZA and the Board of Investments (BoI), and allow the FIRB to approve projects with a $3 billion threshold.

The TWG also proposed to retain the 5% GIE to currently registered enterprises if they export 70% of their output or employ 3,000 workers directly, while offering a 7% GIE on “new expanding projects” of currently registered enterprises involving investment of at least $1 billion or 3,000 direct employees, valid for three years.

He added that the legislation needs to “provide duty-free importation of raw materials for those registered export projects that are directly needed by exporters and finally, a VAT zero rating to those indirect exporters whose products are being used to form a final exportable item.”

CITIRA calls for the gradual reduction of corporate income tax to 20% by 2029 from the current 30%; and the removal of redundant fiscal incentives. Among others, it will grant up to five years of incentives, removing the perpetual grant of 5% GIE and limiting the income tax holiday.

The measure, which forms part of the comprehensive tax reform program, was among the legislative agenda items laid out by President Rodrigo R. Duterte in his fourth State of the Nation Address (SoNA).

He also urged the passage of measures to increase the excise tax on alcohol products and electronic cigarettes, centralize the property valuation and assessment system and simplify the tax structure for financial instruments. All such measures have been passed in the House on final reading, and are either at the committee level or pending plenary action in the Senate.

The government has so far signed Republic Act No. 10963, which slashed personal income tax rates and increased or added levies on several goods and services; RA 11213, the Tax Amnesty Act, which grants an estate tax amnesty and amnesty on delinquent accounts left unpaid after final assessment; and RA 11346, which will gradually increase excise tax on tobacco products to P60 per pack by 2023 from P35 currently. — Charmaine A. Tadalan

TUCP calls on DoLE for more safety nets if CITIRA legislation passes

A MAJOR UNION said Sunday that the Department of Labor and Employment (DoLE) needs to be ready with measures to deal with job losses resulting from the passage of legislation that will become the Corporate Income Tax and Incentives Rationalization Act (CITIRA) if signed.

Trade Union Congress of the Philippines (TUCP) Vice-President Luis M. Corral said that the labor department should have studies ready to “tell us how many workers are really going to lose their jobs in order to formulate an evidenced-based intervention once CITIRA is enforced.”

The TUCP said that economic managers need to provide safety nets for the 700,000 Filipinos who will lose their jobs once CITIRA is enacted. The 700,000 estimate was given by the Joint Foreign Chambers (JFC) for job losses from CITIRA, which hopes to rationalize incentives and forms the second major round of tax reforms.

CITIRA aims to lower the corporate income tax rate to 20% from 30% by 2029. The Philippines has one of the highest corporate tax rates in the region, where the average is about 22%. The bill was unanimously approved by the House of Representatives last month and is currently being discussed at committee level in the Senate.

“Our economic managers are hell-bent in pushing thousands of workers and their families towards the fire by pushing the approval of the CITIRA without any credible job protection measures and believable safety nets for workers affected by the enforcement of this second tax reform package measure,” Mr. Corral said.

TUCP added that the annual budget of P500 million allocated for displaced workers is not enough, adding that the government needs to focus on longtime security of workers after they get displaced and not just providing temporary aid.

Finance Undersecretary Karl Kendrick T. Chua has said that contrary to the JFC’s estimate on potential job losses, CITIRA will eventually produce 1.5 million jobs from business expansion spurred by the reduction in corporate tax rates. — Gillian M. Cortez

Feasibility studies due this year for Bicol expressway, 4th Cebu-Mactan bridge

THE Department of Public Works and Highways (DPWH) hopes to submit next month feasibility studies for a Bicol road project and the fourth Cebu-Mactan bridge.

Public Works Secretary Mark A. Villar told reporters last week the department is preparing the final drafts of the feasibility studies for the Quezon-Bicol Expressway (QBEx) and another Cebu-Mactan bridge.

“Those are two of the major projects that we’re targeting to submit to NEDA (the National Economic and Development Authority) within the year,” he said.

The QBEx spans some 220 kilometers from Pagbilao, Quezon to the Maharlika Highway in San Fernando, Camarines Sur, near Naga City. The DPWH said the highway hopes to bypass current roads which pass through town centers.

“(Our target for completing the studies is) within this month or early next month… then we’ll submit it to NEDA,” Mr. Villar said.

The department earlier said that while the approval of QBEx is still up to NEDA, including the indicative cost of the project, what is wants is to have the project financed by various modes.

This means that the government may shoulder a portion of the expressway cost through the general appropriations act (GAA), but it may also tap foreign help through official development assistance (ODA) or the private sector through a public-private partnership (PPP).

For the “fourth bridge” in Cebu, Mr. Villar said the feasibility study is being led by the Japan International Cooperation Agency (JICA).

“Actually it’s with JICA. Even the full-blown feasibility study is also ongoing… By November malalaman na natin (we’ll know),” he said.

The fourth bridge will complement the current Mactan-Mandaue and Marcelo Fernan bridges, which connect Mandaue City to Lapu-Lapu City in Metro Cebu.

The “third bridge” is the Cebu-Cordova Link Expressway (CCLEx), an 8.5-kilometer toll bridge project currently being built by Metro Pacific Tollways Corp. (MPTC).

UnlikE CCLEx, Mr. Villar said the fourth bridge will be a DPWH project and will focus on creating links between Mactan and the northern part of Cebu.

MPTC is the tollways unit of Metro Pacific Investments Corp., one of the three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Denise A. Valdez

Oil price rollbacks viewed as within the rules

THE fuel pricing practices of oil companies seem to be within the bounds of the rules, economists said, casting doubt on the Department of Energy’s investigation into the extent of the industry’s latest fuel price rollback.

The DoE on Oct. 1 asked oil companies to present the basis for their price reductions, which it claims should have been larger.

The rollbacks followed a few days of price volatility after the drone attacks last month on the Saudi crude production facilities. Global prices settled back down after production was not disrupted as much as initially feared.

“I have the impression that this is an accepted way to price,” University of Asia and the Pacific (UA&P) School of Economics associate professor Peter Lee U said in an Oct. 8 telephone interview.

“But, if (the computations are) different, well, technically they are free. They’re only required by law to inform the DoE and they have.”

Some oil companies on Sept. 30 cut prices by P1.45 per liter for gasoline, P0.60 for diesel, and P1.00 for kerosene. The DoE said prices could have been slashed further by P0.07 per liter for gasoline and by P0.16 per liter for diesel and kerosene.

Mr. Lee U said oil firms follow an automatic pricing mechanism as prescribed by a formula that was put in place when the industry was transitioning towards full deregulation, upon enactment of Republic Act No. 8479, or the Downstream Oil Industry Deregulation Act of 1998.

In 2008, the DoE tapped Mr. Lee U and Sycip, Gorres & Velayo (SGV) to conduct an independent study on the reasonableness of oil pricing system.

Rizal Commercial Banking Corp. (RCBC) chief economist Michael L. Ricafort said the difference in the pricing of oil companies and the DoE’s computation could be down to differing prices for when the fuel was purchased.

“There’s a chance that some of these (companies) purchased when prices were much higher, so it does follow na baka nahirapan sila mag-rollback (they might have found it harder to roll back prices),” Mr. Ricafort said in a separate interview on Oct. 9.

“There are some players who may have stocked when the price was much lower.”

He said, however, that the government is right to be concerned about the pace of the rollbacks.

“When prices are rising, ang bilis nila magtaas bakit kapag nag-rollback parang matagal ata (the industry is quick to raise prices when crude prices are high but slow to reduce when prices fall),” he said.

Mr. Ricafort said the industry was quick to increase prices after the Sept. 14 drone attacks.

“A few days after Sept. 14, nagtaas agad. Mataas pa, dalawang piso. Nung nag-rollback ang tagal (The industry raised prices immediately, by a large margin of about P2. When it was time to roll back they took their time),” he said.

The drone attacks cut Saudi Arabia’s oil production by half, or an estimated 5.7 million barrels per day. — Charmaine A. Tadalan

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