Firms hike pump prices of oil products

OIL FIRMS increased local retail prices this week by P1.10 a liter for gasoline, P1.50 for diesel and P1.10 for kerosene as market anticipation on proposed production cuts by exporters reflected on global trading last week (the reference period for this week’s retail prices).

Major oil firm Shell said it would adjust prices higher by such amounts for gasoline, diesel and kerosene from 6 a.m. today (Tuesday) to reflect international price movements. Petron, another major oil firm, is expected to impose similar price adjustments.

Among the minor oil players, Seaoil said it would adjust its pump prices effective 6 a.m. today to reflect the following price increases: gasoline P1.10/liter, diesel P1.50/liter and kerosene P1.10/liter.

Minor oil firms that do not sell kerosene such as Phoenix Petroleum and PTT Philippines said separately that they would raise prices of gasoline by P1.10 and diesel by P1.50 from 6 a.m. today.

Ahead of the pack, minor oil player Flying V implemented price increases from midnight on gasoline (by P1.10 a liter), diesel (P1.50), and kerosene (P1.10).

Top oil firm Petron has not announced its price adjustments as of press time but was expected to impose similar increases. Almost all of the country’s fuel products are imported or made from crude imports. Oil firms selling locally tend to impose similar price adjustments since they are vulnerable to similar price factors such as crude price, foreign exchange rates, taxes and so on.

Since January this year (including this week’s price increase), gasoline prices have had a net increase of P1.02 a liter and diesel prices have had a net increase of P1.78 centavos a liter. Retail prices are set weekly based on the previous week’s international price average.