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Press Release

Shell Adjusts Fuel Prices

12/05/2009

Pilipinas Shell Petroleum Corporation (Shell) announced that it has implemented upward adjustments of P1.50 per litre on gasoline, diesel and kerosene effective 12:01am today. This price adjustment reflects last week’s surge in international oil prices, which moved together with global equities market on initial signs that the world economy (primarily US) has turned the corner, implying a possible recovery in oil demand. The peso also experienced some weakening over the past week, compared to the previous week.

The implementation of weekly price adjustments is aligned with the company’s aims of moving towards greater pricing transparency.

“We will continue adjusting product prices every week to ensure greater pricing transparency. This means we will not moderate adjustments, upward or downward to reflect current market realities”, Kanapi said.

Oil pricing is driven primarily by fundamentals of international product costs and foreign exchange. Since the oil industry is deregulated, however, the ultimate determinant of oil pricing is market competition.