Pump prices up again this week

For the fourth week in a row in the starting month of 2018, prices at petroleum pumps are on upswing again with diesel prices going up by R0.50 per liter; and gasoline prices by R0.35 per liter. Kerosene, which is another socially reactive commodity, will also go up by R0.50 per liter, according to pricing adjustment notices from the oil firms. As of this writing, the first oil firms to advise on their price hikes had been Pilipinas Shell Petroleum Corporation, Seaoil, PTT Philippines and Eastern Petroleum; while the rest of the players are anticipated to follow. Prices at the pumps will go up either 12:01 a.m. or 6:00 a.m. on Tuesday (January 23), which is the cost movement pattern already prevailing in the market-driven oil sector. In the past three weeks, oil prices have already gone massively just in line with global swings in prices. If coupled with the increases due to the excise taxes imposition under the Tax Reform for Acceleration and Inclusion (TRAIN) Act, it is apparent that pump costs were already on enormous uptick for this month alone. Based on calculation, the pump prices of gasoline had already climbed by R1.00 per liter in the past three weeks (not including yet this week’s price hikes); R1.75 per liter for diesel; and R1.60 per liter for kerosene products. With the TRAIN taxes’ enforcements, prices had gone up further by R2.80 per liter for diesel; R2.97 per liter for gasoline; and R3.36 per liter for kerosene products. Four oil companies have already adjusted their prices last week in a number of their stations; while others will also start their TRAIN-induced adjustments this week. Among the oil companies that advised on TRAIN price hikes this week had been Seaoil in at least 33 stations; and PTT Philippines in some of its retail stations also. On the Department of Energy’s (DOE) assumption, full implementation of the TRAIN hikes will be felt immensely by month-end when roughly 90-percent of stations will already be implementing the newly-taxed prices at their gas pumps. (MMV)