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Thursday, May 30, 2024

‘No oil price surge amid tensions’

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The Department of Energy (DOE) does not expect a spike in domestic fuel prices in the wake of the worsening conflict between Iran and Israel, but continues to  monitor developments in the world oil market.

“While the market may initially have reacted, we hope it will normalize,” Energy Secretary Raphael Lotilla said.

Oil companies announced Monday that pump prices will go up by P0.95 per liter for diesel, P0.85 per liter for kerosene, and P0.40 per liter for gasoline effective 6 a.m. April 16 to reflect the movement of prices in the world market.

DOE director for the Oil Industry Management Bureau Rino Abad said Israel is not an oil supplier, and while Iran is producing around three to four million barrels per day,  it is not likely to stop production, thus the conflict is not expected to have an impact on oil supply.

“So the average of the previous week would be around $89 per barrel. So last week, the average was around $90. It has not spiked up so high but it’s consistently increasing,” Abad said.

He said world oil prices have followed the movement of the Organization of Petroleum Exporting Countries (OPEC), which has been cutting back on production to shore up oil prices.

This week’s oil price hike is the fourth consecutive weekly increase for gasoline, and the second weekly price rise for diesel and kerosene.

On April 9, oil companies raised prices per liter of gasoline by P1.10, for diesel by P1.55, and by P1.40 for kerosene.

Year-to-date adjustment of gasoline, diesel, and kerosene prices stand at a per-liter net increase of P9.30, P6.05 and P1.40, respectively.

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