The country’s oil firms raised oil prices by as much as P0.80 per liter amid speculations of a supply freeze in the world market.
The oil firms raised gasoline prices by P0.80 per liter and diesel by P0.65 per liter effective 6 a.m. Tuesday.
Phoenix Petroleum Philippines assistant vice president Raymond Zorilla said the latest adjustment was “due to the price movements in the world market amid speculations of a possible freeze in oil production.”
So far, only the small players like Phoenix Petroleum, PTT Philippines and Unioil Philippines issued advisories of the oil price increase. Other oil companies are expected to follow suit.
Last March 1, most of the oil companies implemented a decrease of P0.10 per liter for diesel and increase of P0.20 per liter for gasoline.
The oil firms also increased cooking gas or liquefied petroleum gas prices by P0.30 per kg starting March 1 due to the increase in LPG contract price this month by US$5 per metric ton to US$311 per MT from US$306 per MT in February.
Traders have been worried in the past two weeks the deal to freeze output among key producers would not gain traction.
The Energy Department said in its monitoring report that analysts were also concerned on Iraq and Iran that reacted coldly to the freeze proposal.
Earlier reports disclosed that Iran has been ramping up output after nuclear-linked Western economic sanctions were lifted early this year.
While oil prices fluctuated last week, when US crude inventories posted fresh record highs that hit 67.5 million barrels in the week ending February, it bounced back again on reports that Venezuela reaffirmed a mid-March meeting of oil producers to include Saudi Arabia, Russia and Qatar.
The price uptick came after China moved to boost its slowing economy, a drop in crude output from the Organization of Petroleum Exporting Countries and the United States, and a pledge by Saudi Arabia to limit market volatility.