Increased oil demand sets P2 price hike

Consumers will have to brace for a nearly P2 per liter increase effective Tuesday to reflect the movement of prices in the world oil market.

Unioil Petroleum Philippines sounded off the impending oil price hike of P1.40 to P1.50 per liter for diesel and P1.80 to P1.90 per liter for gasoline.

This will be the eight weekly consecutive oil price increase as global economies slowly recover, reflecting an increase in demand.

According to the Department of Energy's monitoring, crude oil prices have been going up due to tight supply amid improving demand and high liquefied natural gas and coal prices.

DOE said the Organization of the Petroleum Exporting Countries and its allies (OPEC+) stuck to its scheduled increase of 400,000 barrels per day for oil production quotas amid the tightness in oil supply.

The increase in OPEC output is still lower than market expectations, the agency said.

In the domestic market, gasoline has gone up P5.40 per liter while diesel went up by P7.15 per liter for the past seven weeks.

On October 12, the oil companies implemented a price increase in domestic oil products, specifically P1.30 per liter for gasoline, P1.40-P1.50 per liter for diesel and P1.45 per liter for kerosene.

These resulted in the year-to-date adjustments to stand at a total net increase of P17.85 per liter for gasoline, P16.50 per liter for diesel and P14.19 per liter for kerosene.

DOE has warned the current tightness in global oil supply will likely last until the end of the year.

Topics: world oil market , oil price , Unioil Petroleum Philippines , Department of Energy
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