Oil prices will likely go up this week due to the decision of the Organization of Petroleum Exporting Countries to adopt a tentative agreement to limit oil production.
“It will be an increase. Hopefully less than P0.50 per liter,” a source said, adding that the company covers the Monday to Thursday trading days only.
“We will know on Monday the trading price for Friday,” the source said.
Opec agreed last Wednesday to limit oil production to between 32.5 million and 33 million barrels per day, resulting in an output cut of up to 740,000 barrels per day.
“There is a high probability of oil prices being driven up as a consequence of Opec’s decision. But implementing the same is another thing. There are Opec member countries that want to regain their market share after being penalized by the international community,” the Energy department said in a statement.
It said supply is one factor, among the many, that affects oil prices while other factors include demand, transport, foreign exchange, peace and order and many others.
“Hence, economists have a hard time predicting market prices for oil… For the Philippines, we need to diversify our sources so that we will not be affected by the price movements from one source,” it said.
The department said demand side management should be implemented and energy efficient appliances and vehicles should be used.
“Rooftop solar panels with net metering technologies should also be utilized. There are government projects and programs on these,” it said.
Last September 27, the oil companies raised the price of gasoline by P0.25 and diesel and P0.20 to P0.30 for kerosene.
They also raised LPG prices last October 1 by P2.60 per kilo to reflect the increase in cost of imported LPG.