Gas, diesel prices rise after Opec supply cut
PUMP prices went up by as much as P0.70 per liter this week as the oil industry ended the year on an optimistic note due to the global production cut implemented starting this month.
Phoenix Petroleum Philippines, Flying V, PTT Philippines, Unioil Philippines, Seaoil Philippines and Pilipinas Shell Petroleum Corp. issued their respective notices of the price increase of P0.70 per liter for gasoline, P0.60 per liter for diesel and P0.55 per liter for kerosene.
Other oil companies were expected to follow suit, implementing their own respective price hikes, the first for the year.
“Seaoil will adjust its pump prices per liter effective 6:00 a.m. Jan. 3, as follows: gasoline, increase of P0.70 per liter; diesel, increase of P0.60 per liter and kerosene, increase of P0.55 per liter. This is to reflect movements in the international oil market,” the company said.
Unioil, meanwhile, said it is also increasing its auto LPG by P2.23 per liter to reflect the higher contract price of liquefied petroleum gas in January.
The latest Energy department monitoring showed that crude oil was trading above $50 per barrel for three weeks in a row, supported by a deal by the Organization of the Petroleum Exporting Countries and non-members to lower output by almost 1.8 million barrels per day from Jan. 1.
The department, however, said that while major Opec producers including Saudi Arabia and Iraq have informed their customers that delivery of supply will be slashed in line with the Opec deal, Libya and Nigeria are exempt because conflict has already curbed their output.
Libya’s National Oil Corp. anticipates to add 270,000 barrels per day to national production over the next three months after announcing the reopening of pipelines leading from two major fields.
On Dec. 27, 2016, the oil companies implemented an increase of P0.50 per liter in gasoline and P0.25 per liter in diesel. There was no movement in the price of kerosene.
The oil firms also raised cooking gas prices by P4.15 per kilo or P45.65 per 11-kilo tank to reflect the higher prices of liquefied petroleum gas in the world market effective Jan. 1.