Diesel led the latest round of oil price hikes of as much as P1.40 per liter effective 6 a.m. today (Tuesday) to reflect the movement of prices in the world oil market.
The oil price hike put an end to three consecutive weeks of price cuts, triggered by concerns of a recession in the United States, the world’s largest consumer of oil products.
Oil prices fell last week to about 2 percent amid the political standoff on the US debt ceiling that stoked recession fears in the world’s biggest oil consumer.
“Uncertainties regarding the US debt ceiling, recent banking issues that could prompt a credit crunch across much of the oil industry and continued strong possibility of a recession remains… significant obstacles” for oil markets, analysts at the energy consulting firm Ritterbusch and Associates said.
Global oil prices rose slightly this week amid bullish sentiment on the resumption of US buying for reserves.
Oil firms also raised the price of kerosene by P1.20 per liter and gasoline by P0.35 per liter.
“Petron will implement the following price increases effective 6 a.m. on May 16: P0.35 per liter for gasoline; P1.40 per liter for diesel; and P1.20 per liter for kerosene. These reflect movements in the international oil market,” the country’s biggest oil company said.
Phoenix Petroleum Philippines, Chevron Philippines, Jetti Petroleum, Cleanfuel, Seaoil Philippines, PetroGazz, and PTT Philippines also implemented the latest round of oil price adjustments.
Domestic pump prices are adjusted every Tuesday to reflect the movement of prices in the world oil market the previous week. Prices vary per station, brand, market forces, and location.
On May 9, the oil companies implemented a per liter decrease of P2.20 for gasoline, P2.70 for diesel, and P2.55 for kerosene.
These resulted in a year-to-date net decrease for diesel at P7.05 per liter and kerosene at P7.50 per liter. Gasoline, on the other hand, has a net increase of P3.85 per liter.