The country’s oil firms raised pump prices for the second consecutive week by P1.50 per liter for diesel and P1.15 per liter for gasoline and kerosene effective today (Tuesday).
Petron Corp. and Total Philippines set the price hike Monday night, saying that it reflected the movements in the international oil market.
Other oil companies were expected to follow suit as of presstime.
A report emphasizing the dramatic drop in U.S. oil drilling rigs in recent months and a cutback in the exploration budgets of energy firms sent oil prices rising early this month.
The Energy Department’s latest monitoring said that the rebound was compounded by the strike called by the United Steelworkers union at nine U.S. refineries and chemical plants across the U.S. last February 1.
This developed after their previous contract expired and industry negotiators, led by Shell, failed to address serious concerns raised by the union regarding the health and safety of workers and their communities.
The increase in world oil prices have raised questions on whether the market had found a price bottom to the sell-off that began in June and was now on its eighth month.
Oil prices were also affected by the decision of Saudi Aramco to cut its official selling prices for crudes loading in March and bound for Asia by 40 US cents to 90 US cents per barrel, so as to stay competitive with abundant crude available to Asian buyers.
Last February 10, local pump prices rose by P2.40 per liter of gasoline, P1.90 per liter of diesel and P2.15 per liter of kerosene.
Prior to the new increase, diesel prices ranged from P25.60 to P30.64 per liter and gasoline, P35.80 to P43 per liter.