Consumers are facing a double whammy with gasoline prices shooting up by P1.15 per liter and liquefied petroleum gas (LPG) rising by P3.10 per kilo to reflect the higher prices in the world oil market.
Oil companies raised the price of gasoline by P1.15 per liter effective Tuesday, Nov. 2, but cut the price of diesel by P0.35 per liter.
However, the oil firms raised the price of LPG or cooking gas by P34.10 per 11-kilo tank effective 4 p.m. Nov. 1.
LPG prices have risen a total of P21.90 per kilo since June, equivalent to an increase of P240.90 per 11-kilo tank.
“Petron will implement a P3.10 per kg increase (VAT-inclusive) in LPG prices effective 4 p.m. Nov. 1. AutoLPG prices will likewise increase by P1.73 per liter at the same time. These reflect the international contract price of LPG for the month of November,” Petron Corp. said in its advisory.
The Department of Energy (DOE) said crude prices continued to strengthen with Europe Brent reaching $85 per barrel recently, the highest since October 2018 amid soaring prices of nearly all commodities.
The strength is supported by recovering demand, particularly in Asia, which has been outpacing supply growth cautiously managed by the Organization of the Petroleum Exporting Countries (OPEC) and its allies.
Asian gasoline consumption continues to strengthen on increasing regional demand and tightening supply as the COVID-19 pandemic eases.
The re-opening of borders and resumption of interstate travel in Southeast Asia also added to bullish market sentiment, the DOE said.
On Oct. 26, the oil companies implemented a price increase in domestic oil products — P1.10 to P1.15 per liter for gasoline, P0.35 to P0.45 per liter for diesel, and P0.55 per liter for kerosene.
These resulted in year-to-date net increase of P20.80 per liter for gasoline, P18.45 per liter for diesel and P16.04 per liter for kerosene.
For LPG, the contract price of LPG went up by $131.50 per MT to $796.50 per MT in October from $665 per MT in September,
The oil companies increased LPG by P7.40/kg, to be implemented on a staggered basis. The oil firms raised the price of LPG by P4 per kilo effective Oct. 1 and another P3.40 per kilo effective Oct. 8.