The country’s oil firms implemented a big-time oil price hike of as much as P1.60 per liter effective 6 am today due to tight supply forecasts amid increased demand on the back of geopolitical tensions.
The oil firms raised the price of gasoline by P1.60 per liter, diesel by P1.10 per liter and kerosene by P1.05 per liter, wiping out the previous week’s rollback.
Seaoil Philippines, PetroGazz, Jetti Petroleum, Chevron Philippines and Cleanfuel issued separate advisories of the latest oil price movement.
DOE Oil Industry Management Bureau (OIMB) director Rodela Romero said last week several factors pushed up world oil prices week on week such as the decision of the Organization of the Petroleum Exporting Countries and its allies to to extend the 2.2 million barrels of oil production cuts until April 2025.
Romero said news that the US and Europe faced potentially severe cold blasts in January also boosted demand for heating fuels.
“Geopolitical risks and trade tensions may cause short-term oil price volatility. Final adjustments will be determined after today’s trading,” Romero said.
Jetti Petroleum president Leo Bellas said the higher global oil prices week on week can be attributed to optimism over China’s economy and fuel demand.
“Shrinking regional supply of diesel and gasoline due to lower outflows from major supplier China has lifted the prices of both products. Limiting further price gains is the sharp increase in US fuel inventories, showing weakened demand,” he said.
On Dec. 31, 2024, the oil companies implemented a rollback on the price of petroleum products. Gasoline and diesel decreased by P0.30 per liter while kerosene decreased by P0.90 per liter.
Prevailing prices of petroleum products at the National Capital Region for the period Dec. 31, 2024 to January 6, 2025 ranges from P50.85 to P74.54 for gasoline , P48.77 to P71.30 per liter for diesel and P69.94 to P81.20 per liter for kerosene.