THE oil companies raised pump prices by as much as P0.70 per liter as the international traders speculated on the possibility of extending the oil producers’ oil-supply cuts into 2018.
They raised the price of kerosene by P0.70 per liter, gasoline by P0.65 per liter and diesel by P0.60 per liter effective 6 a.m. Tuesday.
“Phoenix Petroleum Philippines will increase the price of diesel by P0.60 per liter and gasoline by P0.65 per liter effective 6 a.m. of May 23, 2017,” the company said.
Phoenix aside, Seaoil Philippines, PTT Philippines, Eastern Petroleum and Flying V also raised their prices while the other oil distributors were expected to follow suit.
The price increases on Tuesday would be the second for May after two consecrative weeks of price cuts.
On May 16, the oil companies implemented a P0.30 per-liter increase in the price of gasoline but diesel and kerosene prices stayed the same.
According to the Energy Department, the Organization of Petroleum Exporting Countries and the 11 non-Opec producers including Russia, which had pledged to reduce their output, will gather on May 25 in Vienna to review and possibly extend their six-month agreement to extend their supply cut, which expires at the end of June.
The department said analysts were of the opinion that US oil production could still threaten to disrupt the market balance unless the Opec cuts were deepened.
US oil production had reportedly soared by 10 percent since mid-2016, and to 9.3 million barrels per day.
There were also reports that North Sea oil production, generally seen in terminal decline, was expected to jump by a net 400,000 barrels per day in the next two years.