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Oil price hike set this week

  • Written by Jeffrey C. Tiangco
  • Published in Metro
  • Read: 221

A price hike by as much as P1.35 per liter for diesel and P1.45 for gasoline is set to be implemented by oil companies this week, according to oil industry insiders.

The insiders said the companies, particularly the three oil giants in the country: Pilipinas Shell, Petron Corporation, and Chevron (Caltex) Philippines, are poised to announce the increase in their petroleum products which may take effect Tuesday.

The insiders claimed that the increase could go as high as P1.35 per liter in pump prices for diesel and P1.45 for gasoline. Pump prices for kerosene, however, remain the same.

Last week, oil companies implemented a P0.25 rollback in pump prices for diesel.

The rollback was also implemented after the  Organization of the Petroleum Exporting Countries (OPEC) reached an agreement to cut down production to keep oil prices stable in the world market.
Energy Undersecretary Willian Fuentebella said cut down in oil production would most likely lead to price increases, though he stressed, that such would not be felt until the end of the year but by middle of the month of January next year.
He added that though the effect in the principle of supply and demand would affect oil prices in the world market, other factors, such as the peso exchange rate against the dollar, should also be considered in case of increase of oil prices in the country.
Last November 29, oil companies implemented a big-time oil price hike or P1.50 increase per liter in pump prices of gasoline, P1.40 in diesel and P1.20 for kerosene.
Records at the Department of Energy showed that the pump prices for diesel is currently pegged from P26.15 to P30.85 per liter and P34.60 to 45.50 for gasoline.