Oil companies raised pump prices by P6.10 per liter for diesel and kerosene effective 6 a.m. Tuesday, one of the most significant increases this year to reflect surging world oil prices.
The oil firms also raised the price of gasoline by P1.40 per liter.
“Phoenix Petroleum Philippines will increase the prices of diesel by P6.10 per liter and gasoline by P1.40 per liter effective 6 a.m. of 30 August 2022,” the company said.
PTT Philippines, Chevron Philippines, Seaoil Philippines, and Cleanfuel also issued separate announcements of the latest oil price hike.
Oil prices went up to as high as P9.40 per liter for kerosene, P8.65 per liter for diesel, and P3.40 per liter for gasoline on March 29 due to the Russian invasion of Ukraine and increasing global demand.
The Department of Energy said diesel prices surged to $150 per barrel last week, up $14.43 from $135.60 per barrel the previous week. Kerosene prices also went up to $143.43 per barrel, up $14.04 from $129.40 per barrel.
Unleaded gasoline also increased to $109.73 per barrel, up $2.86 per barrel from $106.87 per barrel week-on-week.
Rodela Romero, director III of the Department of Energy’s Oil Industry Management Bureau, said last week that the oil price increase was “due to high demand brought about by the harvest and winter season.”
Romero said threats of a Russian oil embargo by the end of the year also pushed up world oil prices.
On Aug. 23, the oil companies implemented a per liter increase of P0.70 for gasoline, P2.60 for diesel, and P2.80 for kerosene.
These resulted in the total year-to-date adjustments at a net increase of P18.15 per liter for gasoline, P31.70 per liter for diesel, and P27.10 per liter for kerosene.
Diesel prices in the National Capital Region currently range from P67.60 per to P82.25 per liter, while kerosene sells for P73.44 to P85.35 per liter.
Gasoline ranges from P65.50 to P83.20 per liter.
Prices vary depending on the brand, location, and market forces.
OPEC leader Saudi Arabia’s energy minister said last week that the oil cartel and its allies have the means to deal with market challenges – including cutting production.
“OPEC+ has the commitment, the flexibility, and the means within the existing mechanisms… to deal with such challenges including cutting production at any time”, Prince Abdulaziz bin Salman said in an interview with Bloomberg, according to Saudi state news agency SPA.
The Saudi-led Organization of the Petroleum Exporting Countries (OPEC) consists of 13 members.
OPEC and 10 allies led by Russia—a group known as OPEC+—agreed last month to raise production by 100,000 bpd in September following Western calls for more output after Russia’s war in Ukraine and a post-pandemic surge in demand sent crude prices soaring.
They had agreed to increases of almost 650,000 bpd in July and August, but the cartel has struggled to meet its quotas.
Oil prices have dropped from a peak in June due to growing supplies as well as concerns over the deteriorating economic outlook.
“Volatility and thin liquidity send erroneous signals to markets at times when clarity is most needed,” said Prince Abdulaziz.
He warned that a “vicious circle” was being “amplified by the flow of unsubstantiated stories about demand destruction, recurring news about the return of large volumes of supply, and ambiguity and uncertainty about the potential impacts of price caps, embargoes, and sanctions.”
OPEC raised production by 162,000 barrels in July to a total of 28.8 million bpd, with most of the output coming from Saudi Arabia, the United Arab Emirates, and Kuwait, according to its monthly report.
“In OPEC+ we have experienced a much more challenging environment in the past and we have emerged stronger and more cohesive than ever,” said Prince Abdulaziz.
“Soon we will start working on a new agreement beyond 2022”, he added. With AFP