OIL COMPANIES will impose this week the biggest price increase for gasoline products so far this year at P1.60 per liter (/L), with the prices of diesel and kerosene also going up by at least P1.00/L.
“These reflect the movements in the international oil market,” said Petron Corp. on Monday.
All the companies that sent their advisories as of late afternoon yesterday said they would be raising prices at 6:00 a.m. today, May 22.
Diesel products will increase by P1.15/L and kerosene by P1.00/L.
Sought for comment, the Department of Energy (DoE) said a number of world events had “directly” affected oil prices, citing US sanctions on Iran, and that oil importers had been advised to look for alternative supply.
The DoE pointed out that Iran owns 12% of the Organization of the Petroleum Exporting Countries’ (OPEC) supply, amounting to 32 million barrels a year.
It also cited a crude production decline in Venezuela “due to the ongoing economic and political crisis.”
DoE also said OPEC “is deepening the supply cut led by Saudi Arabia,” which wants the price of crude to be at least $80 per barrel to balance its budget.
Last week, oil companies raised the per liter price of gasoline, diesel and kerosene by P1.10, P1.20 and P0.95, respectively. — Victor V. Saulon

RELATED ARTICLESMORE FROM AUTHOR