Oil firms raise prices except in Metro Manila, calamity areas in 7 provinces

AP FILE PHOTO

MANILA, Philippines—Local oil companies have jacked up prices of petroleum products sold within areas that were not affected by the massive flooding brought by the monsoon rains last week.

Effective Tuesday, Pilipinas Shell Petroleum Corp., Petron Corp., Total Philippines and Seaoil Philippines raised prices of premium gasoline by P1.80 per liter, regular gasoline by P1.70 a liter, kerosene by P1.60 a liter and of diesel by P1.50 per liter in all areas except flood-hit areas such as Metro Manila, portions of Laguna, Cavite, Rizal, Zambales, Bulacan, Pampanga and Bataan.

This is the fifth straight price hike implemented by petroleum companies.

Prior to this week’s oil price hike, diesel products were selling for P39.38 a liter to P43.99 a liter, while gasoline products retailed for P49 a liter to P56.57 a liter. As of August 14, the year-to-date net increase in the price of gasoline in Metro Manila stood at P1.43 a liter, while the net decrease in the price diesel was at P1.68 a liter.

The Department of Energy (DoE) said oil prices surged to a near three-month high during the August 6-10 trading days. This uptrend, it explained, was driven by increased tension in the Middle East and optimism that economic growth would accelerate on continued speculation that central banks would boost efforts to lift growth.

According to the DoE, analysts are saying that the market sentiment has improved in anticipation of Europe’s additional steps to deal with the crisis, and of further monetary easing.