Oil companies on Monday announced they would implement “mixed adjustments” in fuel pump prices this week.
Petron, Shell, Caltex, Seaoil, Total, Unioil, PTT, and Phoenix said the per-liter cost of diesel would go up by 40 centavos, while gasoline will drop by P2 per liter. Kerosene, meanwhile, will also go down by P0.50 per liter.
The price adjustment takes effect at 6 a.m. on October 3 for most oil firms. Cleanfuel, meanwhile, will implement the price adjustments at 12:01 a.m.
This week’s price adjustment brings cumulative per liter increases to P15.30 for gasoline, P13.80 for diesel and P8.95 for kerosene.
Local oil firms adjust prices every week to reflect movements in the world oil market. Since the Philippines is a net oil importer any spikes in international oil prices push up local pump prices.
Last week, oil firms reduced pump prices after more than two months of price increases.
The series of upward price adjustments in the past 11 weeks were triggered by global production cuts recently implemented by the Organization of the Petroleum Exporting Countries (OPEC). Saudi Arabia and Russia have extended their oil export cuts by one million daily and 300,000 barrels per day, respectively.
Based on the monitoring of the Department of Energy (DOE), global crude market may remain tight until the end of the year, as production cuts may not likely be implemented anytime soon.
“Definitely, we will not return to the March and May level wherein Dubai crude is at $77 per barrel. Now, it’s at $91. So definitely we do not expect to go back to the $70 level,” DOE Director Rino Abad said in a radio interview.
Last week, Energy Secretary Raphael Lotilla said the public should manage their expectations that the trend for oil prices is going down.
“It is volatile and we have to always be ready. We are already moving towards the winter months. Normally, prices will increase then, but let us hope that the external factors like Ukraine, and Russia will stabilize,” Lotilla said.