P1/liter oil price hike seen this week

posted September 27, 2021 at 12:55 am
by  Alena Mae S. Flores
Consumers are facing another oil price hike this week by as much as P1 per liter, reflecting the movement of prices in the world oil market—the fifth consecutive price increase amid a stronger global oil demand.

Unioil Petroleum Philippines on Sunday said consumers could expect fuel prices to go up next week from September 28 to October 4.

"Diesel will increase by P0.90 to P1.00 per liter. Gasoline will increase by P0.60 to P0.70 per liter," the company said.

On September 21, the oil companies increased prices in domestic oil products, specifically P0.80 per liter for gasoline as well as diesel and P0.85 per liter for kerosene.

These resulted in the year-to-date adjustments to stand at a total net increase of P14.55 per liter for gasoline, P12.05 per liter for diesel, and P9.70 per liter for kerosene.

Crude oil prices have been going up as the US Gulf Coast industry is still struggling to resume full production following Hurricane Ida, according to the monitoring of the Department of Energy.

DOE said nearly 28 percent or about 513,000 barrels per day of US production in the area remains offline as of Sept. 16.

In addition to the supply concerns in the US, DOE said driving activity continues to improve in key gasoline-importing nations such as Indonesia.

Meanwhile, DOE issued last week a circular meant to ensure consistent and effective monitoring of the activities of downstream oil industry participants in the country.

Department Circular DC2021-09-0029 or the “Guidelines on Notices and Reportorial Requirements Pursuant to the Downstream Oil Industry Deregulation Act” was issued after DOE conducted several virtual public consultations with the downstream oil sector.

“This circular strengthens the Department’s mandate to continuously monitor the compliance of the downstream oil industry participants in the implementation of the existing rules and regulations requiring the submission of necessary notices and reportorial requirements pursuant to Downstream Oil Industry Deregulation Act,” Energy Secretary Alfonso G. Cusi said.

The circular applies to all refiners, importers, bulk distributors, terminal operators/lessors, bunker traders, haulers and own users of crude oil and finished petroleum products as well as all blenders, marketers and own users of base oils and lubricating products under the downstream oil industry.

The circular provided rules on the submission of documentary requirements and reportorial templates regarding acknowledgement or registration requirements of downstream oil industry participants in compliance to the Downstream Oil Industry Deregulation Law.

It also governs the required submission of notices and reports by downstream oil industry participants.

Under the circular, participants are required to regularly submit to the Oil Industry Management Bureau of the DOE their monthly, quarterly, and annual reports about their profile, activities, and inventory flow.

Participants are also directed to submit Special Reports regarding maintenance shutdown, oil spill notification, weekly oil spill progress report, as well as calamity or emergency damage assessment and daily progress report on such matters.

The circular takes effect 15 days after publication in two newspapers of general circulation.

To provide a transition period, the use of new formats for notices and monthly reports will be implemented on the second month after the circular took effect, while the use of the new formats for the quarterly report will be implemented on the next quarter following the effectivity of the circular.

Failure to comply with the submission of notices or reports will cause the suspension of the acknowledgement of the offending party as downstream oil participant or its accreditation as a biofuel participant.

It could also result in the cancellation or suspension of any application or request of the concerned party to the DOE in relation to its operations.

Administrative fines ranging from as high as P10,000 to P50,000 may be imposed on a per violation basis, depending on the nature of the offense.

Criminal charges may also be filed against the non-compliant party, separate from the imposition of such fines or the initiation of an administrative action.

The data on such notices and reports will ultimately form part of the Downstream Oil Industry Sector Report in the Philippine Energy Plan which will be useful as reference reports to the downstream oil industry.

Topics: Consumers , Department of Energy , Unioil Petroleum Philippines , Oil price hike
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