OIL companies for the third time this month, or six days before the New Year , announced another round of oil price hikes effective today.
Pilipinas Shell, one of the three oil giants in the country, and Flying V, a so-called oil industry independent player, spearheaded the announcement of the price adjustment, pegging the increase in pump prices of their gasoline at P0.50 per liter and P0.25 in diesel while no movement of prices for kerosene.
Flying V oil price hike took effect at 12:01 a.m. today while Ina Soriano, of Shell, said the increase in their petroleum products took effect at 6 a.m.
Oil industry insiders said the increase was due to the upward trend of oil prices on the world market.
The increase, the third for this month, came a day after Christmas Day which also came after last week’s oil price hike of P0.70 per liter in pump prices of diesel, P0.65 in kerosene and P0.40 in gasoline.
Prior to this, the oil companies implemented a big time oil price hike of P1.40 per liter both in pump prices of gasoline and diesel while P1.45 in kerosene first week of December.
The third round of oil price increase would severely cut further the public’s peso purchasing power that could serve as indicator how tough things could be in 2017.
The third round of oil price increase also came three weeks after the Organization of the Petroleum Exporting Countries (OPEC) agreed to cut down production supposedly to keep oil prices stable in the world market.
Energy Undersecretary Willian Fuentebella, however said that the cut in oil production would most likely lead to higher oil prices.