OIL firms rolled back diesel prices by P0.25 per liter effective Tuesday to reflect the movement of oil prices in the world market.
Oil prices have been inching up but was disrupted as US employment data remained unchained. The US is the one of the world’s largest oil consumer.
Energy officials last week warned that consumers may expect higher oil prices following the recent decision of both the Organization of the Petroleum Exporting Countries members and non-members to cut production levels.
“It may induce price increase in the local market,” Energy Secretary Alfonso Cusi said.
Cusi added that the peso depreciation will also affect the movement of oil prices.
Crude oil prices surged in the global market on Wednesday last week after both Opec and non-Opec producers had agreed to cut oil production by almost 1.8-million barrels per day (about two percent of global output) to help prop prices.
“This is Opec’s first production cut in eight years and the first in 15 years that non-Opec Russia will also join production…We can expect an increase in prices,” Phoenix Petroleum assistant vice president Raymond Zorrilla said.
Eastern Petroleum president Fer Martinez said the recent understanding between Opec and Russia appears to suggest the “oil price may spike but it’s too early to speculate.”
Martinez, however, said non Opec countries like the US are also influencing global prices.
“Also to be reckon with is the growth of China if its oil appetite is still on decline. But all things bring equal, cut of production will certainly tend to increase price of global prices,” Martinez said.
The oil firms raised the price of gasoline by P1.50 per liter, kerosene by P1.40 per liter and diesel by P1.20 per liter effective November 29.
The total year-to-date adjustment for gasoline is now at net increase of P5.64 while diesel posted a net increase of at P6.93 per liter.