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Tuesday, May 28, 2024

Tight supply jacking up pump prices

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Oil prices went up by as much as P0.55 per liter  amid tight world supply, according  to the Energy Department.

The oil firms increased the price of kerosene by P0.55 per liter, gasoline by P0.40 per liter and diesel by P0.35 per liter.

“Seaoil oil will adjust its pump prices per liter effective 6 a.m., May 31 as follows: gasoline, increase of P0.35 per liter, diesel, increase of P0.40 per liter and kerosene, increase of P0.55 per liter,” the company said.

The oil firms said the price increase “reflect the movement in the international petroleum market.”

Energy director Melita Obillo said the increase in oil prices was due to the  recent wildfires which curbed production in Canada and rebel attacks disrupting exports from Nigeria, improved demand in the US.

Among the companies that issued price advisories as of press time are Seaoil, Unioil Philippines, PTT Philippines, Phoenix Petroleum and Eastern Petroleum.

According to the latest report of the Energy Department, oil prices slightly went up recently after Goldman Sachs disclosed a short-term supply deficit in the market brought about by production outages.

The department said a better overall demand coupled with the disruption of supply in Nigeria reportedly created a surprising supply crunch in the short run.

Production outages in Canada due to wildfires and a political crisis in Venezuela is expected to suppress output.

The department also said that Platts has reported that the glut of cargoes in Asia was said to be gradually clearing.

A slowdown in arbitrage cargoes from Europe and the US, typically the case over the summer as demand for gasoline in the US spikes, has also capped the supply surplus in the region.

Last May 24, most oil companies increased their prices by P1.20 per liter for gasoline, P1.00 per liter for diesel and P1.25 per liter for kerosene.

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