Oil firms expected to hike fuel pump prices for 7th consecutive week

By Lenie Lectura - March 26, 2019

https://businessmirror.com.ph/2019/03/26/oil-firms-expected-to-hike-fuel-pump-prices-for-7th-consecutive-week/

Fuel pump prices are expected to rise for the seventh consecutive week on Tuesday mainly due to developments in the world oil market.

Oil firms announced a P0.65 per liter increase in gasoline prices effective 6 a.m. on Monday, March 26.

Diesel and kerosene prices, on the other hand, will go up by P0.10 per liter, respectively.

PetroGazz, PTT Philippines, Eastern Petroleum, Unioil Philippines, Seaoil Philippines and Pilipinas Shell said they will implement their price adjustment at 6 a.m. of Tuesday.

Gasoline prices since February 4 had gone up by a total of P6.15 per liter.

Other oil firms are expected to follow suit. Most oil firms adjust their prices every Tuesday morning.

The Department of Energy (DOE) said recent world events have once again caused the increase of oil prices in the local market, citing the continuing decline of oil production by members of the Organization of the Petroleum Exporting Countries, as well as by countries outside of Opec.

Saudi Arabia, with its large contribution to world oil supply, has steadily reduced its crude oil production by 336,000 barrels per day  this March, bringing the total Opec reduction to around 1.6 million barrels per day  as of March 2019. Further cuts on exported crude oil from Saudi Arabia are expected in April 2019, with the announced reduction of an additional 635,000 barrels per day.

Actions by the United States, with the imposed sanctions on Venezuela and Iran have also affected world oil prices, including the impending Iran export waiver expiring in April, affecting a further reduction of crude oil supply by around 1.1 million barrels per day. This has already resulted in recent cuts of US oil reserves, causing the overall increase in crude prices.

“The nation, along with the majority of the globe, is facing the realities of socio-political turmoil in oil-producing countries, which, sadly, results in fluctuations of oil prices. I cannot stress enough that, as an oil importing country, our market is susceptible to these effects, and it is up to us as a nation how we handle this challenge,” DOE secretary Alfonso Cusi said.

He reminded consumers to utilize energy efficiently and exercise their power of choice to enhance more competition in the retail level.  “The retail prices and services per retail station are different. Our consumers must compare the prices and services and choose the retail station that provides the best products and services that suit their needs,” Cusi explained.

“Everyone must be aware of their respective energy consumption habits and continue to observe an energy efficient lifestyle, whether we have fuel price increases or not. The DOE will continue its oil price and fuel quality monitoring activities,” he said.