The country’s oil firms implemented another big-time oil price hike of as much as P1.35 per liter for gasoline, effective 6 a.m. Tuesday, due to concerns over the tightening of global oil supply.
The oil firms also raised the price of diesel and kerosene by P0.80 and P0.70 per liter, respectively, triggering the second consecutive week of price increases.
Department of Energy Oil Industry Management Bureau (OIMB) Director Rodela Romero said last week that gasoline might go up by P0.80 to P1.40 per liter, diesel by P0.40 to P1 per liter, and kerosene by P0.50 to P0.70 per liter.
She attributed the higher pump prices to fresh U.S. sanctions on Iran’s oil shipping network, which are seen to tighten global crude supply, and a sharper-than-expected decline in U.S. crude inventories.
“Final adjustment will be determined after today’s trading and oil companies’ inputs on their related costs,” Romero said.
Meanwhile, Jetti Petroleum President Leo Bellas estimated the increase for gasoline at P1.10 to P1.30 per liter and diesel at P0.70 to P0.90 per liter based on the movement of the Mean of Platts Singapore (MOPS) and foreign exchange rates for the first four days of the week versus last week’s full-week average.
“Oil prices continued their rally due to concerns about tightening supply, following a fresh round of U.S. sanctions on Iran,” Bellas said.
He said easing fears about economic uncertainty in the U.S., the prospects of lowering tariffs on imported Chinese goods, and a drop in U.S. fuel stockpiles have also helped shore up oil prices.
On April 22, the oil firms raised the price of gasoline by P1.35 per liter, diesel by P1.30 per liter, and kerosene by P1.10 per liter.
Year-to-date, gasoline has a total net increase of P3.65 per liter, diesel has a total net increase of P3.45 per liter, while kerosene has a total net decrease of P0.90 per liter.