Gas prices up by ₱1.25/liter; diesel, ₱.55/liter

Published May 18, 2020, 10:00 PM By Myrna M. Velasco
https://business.mb.com.ph/2020/05/18/gas-prices-up-by-%e2%82%b11-25liter-diesel-%e2%82%b1-55liter/

As international oil prices gain traction, Filipino motorists who are now out to work or “malling diversion” despite the lingering pandemic will have to brace for higher costs to be paid at petroleum pumps at the scale of ₱1.25 per liter for gasoline; and ₱0.55 per liter for diesel.

Price hike for kerosene products will even be heftier at ₱2.35 per liter as announced by the oil companies.

As of this writing, the industry players that already sent notices on their price increases include Pilipinas Shell Petroleum Corporation, PetroGazz, Seaoil, Cleanfuel and PPT Philippines; while the rest of their rivals are anticipated to go along with this week’s pricing trend.

With tighter compliance on the agreed production cuts by the Organization of the Petroleum Exporting Countries (OPEC) and ally-producers, rally in prices had been winning through in the past weeks already.

As international benchmark Brent crude gathered steam to climb back to the level of US$31 to $32 per barrel last week, oil industry players have been indicating that price adjustments will turn up as a result.

The doom in decimated demand during the March-April lockdowns is also seen pulling through gradually, as more countries have been pacing on economic reopening.

In the Philippines, despite the prevailing modified enhanced and general community quarantines, Filipinos can no longer keep themselves up at home. Hence, amid caution of health risks, many have been opting to go out either for economic survival or recreational breather.

For the oil industry, that could redound to probable hike in their sales volumes especially so since the ones taking leisure drives at this point are private vehicle owners.

The sector suffered drastic demand drop around March to May because of the community quarantine mandates of the government, but with the economic resuscitation, they are also targeting to recover on their sales as well as on revenues and income.

However, with the reckless action of some individuals while they are out from their homes, even the government is not discounting the possibility of a second wave of coronavirus infections.