Another round of oil price hike
While the country is being pummeled by series of calamities, the pockets of Filipino consumers are similarly battered with the rash of oil price increases.
Effective today, September 25, gasoline prices will increase anew by 10.40 per liter, diesel by 10.20 per liter, and kerosene by 10.15 per liter.
As of Monday, Pilipinas Shell Petroleum Corporation, Seaoil Philippines, PTT, Total, Flying V, Petro Gazz, and Phoenix Petroleum Philippines, Inc. have sent notices of the price increase that will take effect at 6 a.m. today.
And being the industry’s weekly cycle of price adjustment, other industry players are expected to follow suit and announce their new price adjustment.
In areas under the state of calamity, price freeze remains
in force. But some industry stakeholders noted that this is a“futile exercise” as many of the oil companies inthese jurisdictions sustained some degree of damage in their facilities and therefore not operating at the moment.
While this week’s price increase is relatively marginal, data from Department of Energy (DOE) over the nine-month stretch from January to September would show that the aggregate cost of price increase for gasoline already hovered at 19.00 per liter, diesel at 19.15 per liter; and kerosene at 18.10 per liter.
DOE-Oil Industry Management Bureau Assistant Director Rodela I. Romero said pricehikes this week would still be due to the “Iran sanctions and increase in demand in the Asianregion.” Adding to the problem is the sizeable excise taxes enforced on oil commodities due to the Tax Reform forAcceleration and Inclusion (TRAIN) Act of the Duterte administration.
As of last week, global oil price benchmark Brent crude had been up to US$78.80 per barrel; while for Dubai crude, which is generally the reference point for Asian markets,its price had escalated past the US$76 per barrel.
Ahead of the meeting of the Organization of the Petroleum Exporting Countries (OPEC) this week, the market had turned into jittery mode, especially with nagging forecasts that oil prices will soon hit the unsettling US$80 per barrel.
Industry apprehensions are also heightened as guessing-game rages on whether or notglobal producers would be able to plug supply void that will be taken out from the market due to imposition of sanctions on Iran by November 4 this year.