Oil players implemented big-time price increases for the third consecutive week of P1.45 per liter effective 6 a.m. Tuesday, reflecting the bullish trend in the global oil markets.
Pilipinas Shell Petroleum Corp. and Petro Gazz raised the price of gasoline and diesel by P1.45 per liter. Shell also raised the price of kerosene by P 1.35 per liter.
“Petro Gazz will implement price hike on fuel products, effective 6am February 26, Tuesday, diesel by P1.45 per liter and gasoline by P1.45 per liter,” the company said in its advisory. Other oil firms are expected to follow.
Unioil Philippines forecast diesel prices to go up by P1.40 to P1.50 and gasoline should go up by P1.30 to P1.40 per liter.
On Feb. 9, the country’s oil firms raised pump prices by P0.70 per liter for diesel and gasoline and P0.35 per liter for kerosene.
According to the latest monitoring report of the Department of Energy, year-to-date adjustments prior to the latest big-time hike stand at a net increase of P2.20 per liter for gasoline, P3 per liter for diesel and P2.05 per liter for kerosene.
DOE said the surplus in oil production in 2018 was a result of the anticipated US-led economic sanctions on Iran which triggered members of the Oil Petroleum Exporting Countries and non-members to ramp up production to make up for an expected shortage of oil.
DOE said that oil-producing countries have agreed to cut back on production in order to bring both oil supply and prices to normal levels.
However, recent political events in Venezuela, along with the waiving on the sanctions on Iran expiring on April, caused prices to steadily increase affecting the local market, it said.
“We are imploring the public to be conscious of their energy and fuel usage, especially during these times, as world oil prices are steadily climbing to high levels due to economic and geopolitical factors which we are bound to experience as an oil importing country. But even if oil prices go down, it is imperative that we embrace the efficient way of using our energy resources.“ Energy Secretary Alfonso Cusi said.
“We would like to remind fellow Filipinos that we are responsible for our individual actions. If we come together with the common goal of energy conservation through energy efficiency, we can achieve a lot in terms of immediate in-pocket savings and energy sustainability in the long term,” he said.
DOE consulted oil industry players on a policy for more information and unbundling for items that affect the prices of petroleum products.
“It is in times like this that we should do our roles, from consumers to industry players, to be of service to one another. We are seeking everyone’s cooperation as the government works to address the nation’s energy needs. We aim for transparency at every turn so that we can give the people the best products for their value,” Cusi said.