INQUIRER FILE PHOTO
MANILA, Philippines —The small reprieve granted to motorists last week will be short-lived, as local oil firms announced big-time increases in the pump prices of petroleum products effective Tuesday, Feb. 20.
In separate advisories, the oil companies said the price per liter of gasoline would climb by P1.60 and diesel by P1.10. The price of kerosene will likewise increase by P1.05 per liter.
Shell and Seaoil will implement the price adjustments by 6 a.m.
Rodela Romero, director of the Department of Energy (DOE) Oil Industry Management Bureau, explained that the hefty increases were triggered by the halt of shipping in the Red Sea and Suez Canal, as well as the intensifying conflict in the Middle East.
The Organization of the Petroleum Exporting Countries (Opec) is also expected to extend production cuts of 2.2 million barrels per day throughout the first quarter of the year.
READ:Oil prices gain after OPEC+ maintains output cuts
While demand growth slowed in the global market last week, Romero noted that the Opec now projected “strong demand” for 2024.
Local oil firms last week slashed the price per liter of gasoline by P0.60, diesel just by P0.10, and kerosene by P0.40.
READ:Price of gasoline down 60¢, diesel by 10¢ per liter
This resulted in a year-to-date net increase of P4.45 per liter for gasoline, P4.30 per liter for diesel and P0.45 per liter for kerosene, the DOE said.
DOE data show that the prevailing retail prices in Metro Manila ranged from P53.77 per liter to P83.46 per liter as of Feb. 15.
This is already higher than the prices observed in the first week of January at P50.49 per liter to P78.81 per liter.