Tuesday, August 23, 2016

Oil firms to begin ‘hefty’ price hike for fuel products beginning Tuesday



by Lenie Lectura - August 22, 2016

Oil companies are implementing a hefty price increase in petroleum products effective on Tuesday morning.
In separate announcements, they said gasoline products would increase by P1.35 per liter.  Diesel and kerosene prices will go up by P1.45 per liter each. This is the second consecutive oil-price hike implemented by the oil companies this month.
Eastern Petroleum, Phoenix Petroleum, PTT Philippines and Seaoil will implement their respective oil-price adjustment at 6 a.m. on Tuesday. They said the price hike reflects movements in the international oil market. Other oil firms are expected to follow suit.
The price increase comes after reports of a possible output freeze when oil producers meet next month.
The impending oil-price hike is on account of a speculation there could be a production halt after the meeting among Organization of the Petroleum Exporting Countries (Opec) and non-Opec member-countries scheduled to take place in September.
The last time oil producers met, they failed to reach a deal aimed at cutting production. With no agreement reached, this resulted to lower oil prices the following trading week.
Last week oil companies implemented a price increase per liter of P0.55 for gasoline, P0.70 for diesel and P0.65 for kerosene. After the price hike on August 16, the year-to-date price-increase adjustment for gasoline reached P0.64 and P3.33 in diesel. Liquified petroleum gas remains at a net decrease of P8.48 per kilogram.

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