Eastern Petroleum jacks up gas prices effective Wednesday

MANILA, Philippines—Independent player Eastern Petroleum is jacking up the price of gasoline by P1.75 a liter, and of kerosene and diesel by P1.50 a liter, effective Wednesday.

According to Eastern Petroleum, the latest oil price hike was meant to reflect the sudden increase in the international oil price of petroleum products.

Other oil companies have not announced their respective price adjustments as of Tuesday evening, but are expected to follow suit.

This price adjustment, the second to be implemented since the year started, has brought the net increase in the prices of gasoline to P2.65 a liter; of diesel to P1.80 a liter; and of kerosene to P1.70 a liter.

Prior to this week’s increase, the price of diesel ranged from P42.84 a liter to P46.43 a liter, while gasoline retailed for P48.78 a liter to P55.70 a liter, as of January 4.

According to the January 10 oil monitor report of the Department of Energy, oil prices rose higher in the first trading week of 2012 driven by heightened concerns over Iran’s threat to close the Strait of Hormuz, the strategic waterway where one-sixth of the world’s oil exports pass daily.

“Also supporting price movements is the imminent move of the European Union (EU) to impose an oil embargo on Iran to pressure the country to halt its alleged nuclear weapons program.  European diplomats said there was already a consensus that the ban on crude imports would be applied, but that there was still debate on the timing and duration of the measures,” the report stated.