AP FILE PHOTO
MANILA, Philippines — Gasoline and kerosene prices increased on Tuesday (Oct. 22) as fuel product prices recovered for the second straight week — still on strong economic data from China. This was the same trend last week, when fuel prices in the Philippines rebounded from three straight weeks of rollbacks.
China, the no. 2 economy, is the world’s top fuel consumer, influencing traders’ expectations on global demand. The Philippines imports most of its fuel products, making it vulnerable to trends in international fuel trade.
Petron and Shell raised gasoline prices by P0.20 per liter and that for kerosene by P0.35 per liter starting 6 a.m. Tuesday (Oct. 22).
Total and PTT Philippines also raised gasoline prices at the pump by P0.20 per liter from 6 a.m. Tuesday, with no adjustments for other fuel products.
“This reflects movements in the international oil market,” Petron said.
Disaster-hit Cebu and Bohol were largely spared from the price hikes. Petron and Shell said the adjustments will not be implemented in Bohol and Cebu. Total said Cebu was exempted from its price hike for gasoline.
Including adjustments this week, the year-to-date net increase for major fuel products gasoline and diesel stood at P1.14 per liter and P2.78 per liter, respectively.
Last week, oil prices moved up as China’s National Bureau of Statistics announced year-on-year gross domestic product growth of 7.8 percent in the third quarter. This is the fastest pace of growth for China this year, boosting hopes of increasing fuel demand moving forward.
Expectations that the US Federal Reserve would delay tapering its stimulus policy (given the 16-day federal government shutdown) also supported prices, as did weakness in the US dollar. However, such price support was limited by concerns that Washington might be in for a new fiscal deadlock in a few months should American leaders fail to address contentious issues.