An analysis of monthly price data since the full deregulation of the oil industry in 1999 shows that local pump prices are rising faster than the global crude prices, according to research group IBON.

An analysis of monthly price data since the full deregulation of the oil industry in 1999 shows that local pump prices are rising faster than the global crude prices, according to research group IBON.

In diesel prices, for instance, IBON estimates that local pump prices increased 20-22% more than the increase in Dubai prices—taking out the effect of government taxes and taking account price adjustments since 1999. According to IBON, it contrasts with the pre-deregulation period when net increases in diesel pump prices were lower than increases in Dubai.

This estimate on diesel prices, which is based on the publicly available data, shows how oil players Shell, Chevron and Petron have been overcharging beyond what is justified by movements in international crude prices. According to IBON, this does not yet reflect profits made by the global cartel of major private and national oil companies from the sale of crude oil.

According to the group, rapid increases in oil prices may be controlled with the reversal of oil deregulation. At the same time, removing the reformed value-added tax (RVAT) on oil products will give immediate relief to millions of consumers from the uncontrolled oil prices. IBON reiterated that the oil industry is a strategic sector that requires responsible state intervention. (end)