Fuel prices up this week with lower supply after Hurricane Harvey

PRICES OF petroleum products are set to increase this week in the aftermath of Hurricane Harvey, which pulled down supply in the US and built up demand in the international oil market, the Department of Energy (DoE) said on Monday. Gasoline and diesel prices will both increase by P0.40 per liter (/L), while kerosene will rise by P0.50/L, oil companies said. For most retailers, the price hike will take effect at 6:00 a.m. on Tuesday, Sept. 5. In a briefing, DoE officials said oil supply was reduced primarily because of Hurricane Harvey, which caused the shutdown of 11 refineries in Texas and pared down supply by three million barrels per day or almost 16% of US demand. They said even before the shutdown, US demand was already higher than its production, thus it turned to the international market to make up for the difference. In the coming weeks, the DoE said the hurricane might continue to have an impact on supply and prices, depending on the scale of devastation in the US. The agency also cited refinery outages in China as adding to the supply shortfall. Last week, gasoline, diesel and kerosene per liter prices went up by P0.35, P0.20 and P0.20, respectively. — Victor V. Saulon