Oil companies jacked up diesel prices Tuesday by a hefty P1.45 per liter to reflect the movement of oil prices in the world market.
The oil firms also increased gasoline prices by P1 per liter and kerosene by P1.35 per liter.
“We’re entirely dependent on the world oil price as we import 99.99 percent of oil requirements. Of course, the deterioration of peso [vis-a-vis the US] dollar contributed P0.18 per liter for every peso drop while VAT [value added tax] will be added. The higher the price, the higher the VAT since it’s 12 percent regardless of the base prices. Added is the excise tax in diesel, which used to be exempted,” Independent Petroleum Philippines Companies Association president Fernando Martinez said.
Eastern Petroleum Philippines, Flying V, Pilipinas Shell Petroleum Corp., Seaoil Philippines, and PTT Philippines issued separate announcements of the latest oil price hike. Other oil companies are expected to follow suit.
The oil companies encouraged consumers to take advantage of promos and discounts to mitigate the impact of the higher oil prices.
Unioil Philippines urged consumers to take advantage of the new S&R savings and save P2.50 per liter on Euro 5 diesel and up to P5 on Euro 5 gasoline at participating stations.
Other oil companies implement fuel discounts to public utility vehicles to cushion the impact on consumers.
Taking into account the latest increase, the year-to-date total adjustments stand at a net increase of P11.40 per liter for gasoline, P12.15 per liter for diesel and P10.70 per liter for kerosene.
World oil prices have been on the upswing due to the US sanctions against Iran, which could reduce supply.
There were also reports that global prices would go up last week after the Organization of Petroleum Exporting Countries did not increase output following an unofficial gathering in Algeria.
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