MANILA — Chevron Philippines Inc. (CPI), Petron Corp., Seaoil Philippines Inc. and Pilipinas Shell Petroleum Corp. (PSPC) will enforce a 30-centavo hike on gasoline prices and 10 centavos on diesel prices per liter on Tuesday.
The four oil firms maintain their prices on kerosene. products.
PSPC’s price change will become effective at 12:01 a.m. Tuesday (Jan. 27) while the three other firms will enforce the price hike at 6 a.m., also on Tuesday.
The four firms noted the price change reflect international market movements.
Department of Energy’s (DOE) latest oil monitor in Metro Manila shows diesel pump prices range from Php 24.10 to Php 27.70 per liter. It has a common price of Php 26.35 per liter.
Gasoline price, on the other hand, plays between Php 33.10 and Php 39.10, with a common price of Php 37.30 per liter, DOE monitoring showed.
The DOE said the cumulative price cuts on diesel this month amounted to Php 3.75 per liter, while gasoline cuts amounted Php 3.90 per liter.
The local drop in prices started on Nov. 25, triggered by initial statements of the Organization of Petroleum Exporting Countries (OPEC) members not to cut oil production, before the OPEC meeting in which it decided the same.
The decision not to cut oil production resulted in an oversupply of oil in the market, coming also from non-OPEC producers and the shale oil producers in North America.
Since the Philippines is dependent on international fuel supply, the international price plunge also affected local oil players, whom often sourced their products from Saudi Arabia.
The decrease continued until the last week of December when oil companies noted a hike of Php 0.30 centavos per liter for gas and a boost of Php0.10 centavos per liter for kerosene.
It fell yet again during the first week of January, citing product cuts for gas, diesel and kerosene, all amounting to more than Php 1.50 per liter.
For Jan. 23, Crude oil closed at USD 45.59 per barrel at the trading floor of the New York Mercantile Exchange (NYMEX) on Jan. 23, notably still far from the economic meltdown lows in 2008 at US$ 38.37 per barrel.
Early last week, King Abdullah of oil giant Saudi Arabia passed away, triggering boost in Brent and NYMEX — which then stabilized again near its rate — from uncertainty on which policy his successor Crown Prince Salman will take.
However, reports said that the Crown Prince will still carry on his half brother’s policy, which was not to cut oil production.
On the other hand, Saudi Aramco, which is Saudi’s national oil company, said early January that it will lower its discount to Asia for February delivery and will increase its price discount to Europe.