OIL companies raised pump prices by as much as P0.60 per liter starting Tuesday to reflect the movement of world oil prices.
“Phoenix Petroleum Philippines will increase the prices of gasoline by P0.35 per liter and diesel by P0.60 per liter effective 6 a.m. of Oct. 4, 2016,” Phoenix said.
Among the oil firms who raised prices are Flying V, Seaoil, Unioil while others are expected to follow suit.
Oil prices went up due to the continuing oversupply situation in the global market and the Organization of Petroleum Exporting Countries’s tentative agreement to limit oil production.
Opec agreed last Wednesday to limit oil production between 32.5 million and 33 million barrels per day, resulting in up to 740,000 barrels per day production cut.
“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 earlier.
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 Sept. 27, the oil companies implemented a price increase of P0.25 for gasoline and diesel and P0.20 to P0.30 for kerosene.
The oil firms also raised LPG prices last Oct. 1 by P2.60 per kilo to reflect the increase in cost of imported LPG.