Fuel prices mixed on volatile trading

OIL FIRMS implemented mixed fuel price movements this week, reflecting volatile trading the week before following failed talks on proposed oil output curbs by exporting countries to defend the price of crude oil.

Major oil firms Petron and Shell cut the price of gasoline by 40 centavos per liter starting 6 a.m. today (Tuesday) but raised the price of diesel by 55 centavos per liter and that of kerosene by 20 centavos per liter.

Seaoil  likewise made similar adjustments. Phoenix Petroleum and PTT Philippines also separately lowered the price of  gasoline by 40 centavos per liter and increased the price of diesel by 55 centavos per liter effective 6 a.m. Tuesday.

Flying V said it reduced the price of gasoline by 40 centavos per liter and raised the price of diesel by 55 centavos per liter and that of kerosene by 20 centavos per liter  effective 12:01 a.m. Tuesday.

Since the start of the year (including this week’s price hike), gasoline has had a net increase of 62 centavos per liter while that of diesel had a net increase of P2.33 per liter.

Early last week during the reference trading period, market sentiment cooled following failed talks between members of the Organization of the Petroleum Exporting Countries and a handful of outsiders such as Russia.

Saudi Arabia and other leading exporters have expressed willingness to control output if other major exporters would do the same but Iran, which has just been released from UN and US sanctions, has consistently said it will not cut production and will revive its former stature as a major oil exporter.

Turmoil in Iraq, where the government is fighting the  Islamic State (IS) in the country, is putting a huge strain on resources and sending chills to the rest of the oil market, said Energy Secretary Zenaida Monsada in a press briefing.

Meanwhile, on the power supply situation in the Philippines for the May 9 elections, Monsada said there would likely be enough power supply of about 12,000 megawatts  to serve about 9,000 MW of demand.  Power demand is expected to be low since it is a nonworking holiday.