Tuesday, January 29, 2019

Diesel up by P0.55 per liter, gasoline by P0.20 today



Updated By MYRNA VELASCO

Prices at petroleum pumps will rise again this morning by as much as P0.55 per liter for diesel; and P0.20 per liter for gasoline products, according to the pricing advisories of the oil companies.
The price of kerosene will also climb by P0.40 per liter in this week’s cost swings generally scheduled at 6 a.m. today.
As of press time, the oil companies that already hiked prices were Pilipinas Shell Petroleum Corporation, Eastern Petroleum, PetroGazz, PTT Philippines and Total while the rest of the industry players are anticipated to follow.
This week’s price increases will basically complete the series of cost upticks this January – which essentially breaches already its fourth week.
Factoring in the additional excise taxes levied on petroleum products for this year, the rise in prices this January alone could hover at P6.15 per liter for diesel; P4.74 per liter for gasoline; and P4.07 per liter for kerosene.
Most of the oil companies were already monitored increasing excise taxes at their retail networks; although some claimed they have not imposed yet the additional tax levy.
The initial weeks of the year sent fresh round of ‘shock waves’ in the global oil industry following the enforcement of production cutbacks committed by the Organization of the Petroleum Exporting Countries (OPEC) and its ally-producers led by Russia.
Beyond that, however, there are other factors weighing heavily on international oil prices – including forecasts slowdown of global economic growth primarily for Asian superpower China.
Tame economic outlook had likewise been generally supported by ‘bearish’ forecasts that no less than the International Monetary Fund (IMF) had laid down.
The boom-and-bust cycle in the global oil sector still proved a “puzzling terrain” especially for many import-dependent countries like the Philippines – that coping mechanism cannot come soon as expected hinging on cost swings in the world market.
The Philippines has been intending to beef up its ‘oil reserve’ with the State eyeing its investment plunge into the deregulated oil market – but an array of impediments had been delaying even its initial diesel importation plan.
Meanwhile, Reuters reported from Singapore yesterday that oil prices fell by 1 percent on Monday after US companies added rigs for the first time this year, a signal that crude output may rise further, and China, the world’s second-largest oil user, reported additional signs of an economic slowdown.
US crude oil futures were at $53.13 per barrel at 0543 GMT, down 56 cents, or 1 percent, from their last settlement. (With a report from Reuters)
International Brent crude oil futures were at $61.03 a barrel, down 61 cents, or 1 percent.
High US crude oil production, which rose to a record 11.9 million barrels per day (bpd) late last year, has been weighing on oil markets, traders said. (With a report from Reuters)

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