Oil companies will implement a hefty price hike of up to P2 per liter effective 6 a.m. today, as geopolitical tensions in Venezuela, Iran and the Black Sea raise concerns over global supply.
The firms will increase the price of diesel by P2 per liter, kerosene by P1.50 per liter and gasoline by P1 per liter.
Seaoil Philippines, Jetti Petroleum, PTT Philippines and Cleanfuel issued separate announcements of the price movements.
Jetti Petroleum President Leo Bellas said last week that the price of crude oil and refined products increased due to the volatile environment caused by simultaneous geopolitical tensions, despite a potential supply glut looming over the market.
He said protests in Iran and the threat of U.S. intervention have raised concerns that conflict could spread and threaten flows through the Strait of Hormuz.
“Furthermore, the drone attacks on two Western-operated oil tankers in the Black Sea have added to the tensions in the Middle East and fueled worries of more supplies being affected,” Bellas said.
Despite this, Bellas noted that recent comments by President Trump suggesting a crackdown on protesters in Iran is easing have allayed some fears of supply disruptions.
“Expectations of stability in supply from Venezuela and the larger-than-expected increase in U.S. crude oil and gasoline inventories have also weighed on prices recently,” he said.
On Jan. 13, oil firms announced an increase of 0.30 pesos per liter for gasoline and kerosene, and 0.20 pesos per liter for diesel.
Year-to-date total net increases stand at 0.20 pesos per liter for gasoline and 0.40 pesos per liter for both diesel and kerosene.
