The country’s oil firms are poised to increase pump prices by as much as P0.75 per liter on Tuesday.
READ: Oil prices swing high, low: Gas up; diesel down
“Effective 12:01 a.m. Aug. 20, 2019, Chevron Philippines Inc. (Caltex) will increase WPP [wholesale posted price] of Platinum and Silver by P0.50 per liter, diesel by P0.75 per liter and kerosene by P0.50 per liter (all VAT-Inc),” Chevron said.
PetroGazz, for its part, will also implement a price hike on fuel products effective 6 a.m. Tuesday: diesel by P0.75 per liter and gasoline by P0.50 per liter.
Last Aug. 13, most of the oil companies implemented a price cut of P0.50 per liter for gasoline, P1.10 per liter for diesel and P1.30 per liter for kerosene.
According to the latest monitoring of the Department of Energy, year-to-date adjustments stand at a net increase of P4.50 per liter for gasoline, P2.85 per liter for diesel and P0.85 per liter for kerosene.
World oil prices have remained volatile in recent months due to the ongoing China and US trade war which could affect demand. Even local oil companies are keenly watching developments between the US-China trade war, which could impact on future expansion plans.
“We want to continue expanding and at the same time we’re watching what happens to the trade war, obviously a concern that wasn’t existent 18 months ago. That one really is affecting not just both countries but even those in the periphery because ultimately what happens to both of them if they have to both of them if they have… if they catch a cold, the Philippines needs… might go to the ICU,” Francis Glenn Yu, Seaoil chief executive officer, said.
Yu said oil companies have already been experiencing price volatility due to the US-China trade war which could affect global demand.
“I definitely think it is playing in the minds of every player because we’re talking about the two largest consumers of… two largest countries… the consumers of oil. The two largest consumers of oil, if something happens in either of their economies how this will affect,” he said.
He said Seaoil is selling a commodity that is greatly affected “so we have to take a look at that.”
“If there’s a slowdown, there will be a trickle-down effect… What are those products that we export into China that China uses as components to export into the United States…That will impact local demand,” he said.
Seaoil, one of the country’s leading independent oil companies with more than 450 retail stations, imports finished petroleum products to sell to the domestic market.
“It’s a macro. It affects everyone. I think in our mind if demand all of a sudden disappears and then they have all this capex in the pipeline,” he said.
Seaoil spent P811 million for its capital expenditure budget last year from P524 million in 2017. It did not disclose capex figures for the year. The company targets to open about three to five stations per month.
“Normally, we will revisit it towards the end of the year… so last quarter… as related to the trade war and the understanding that might impact the future investment,” Yu said.
READ: Oil price rollback: P1.10/liter
