OIL FIRMS RAISED for the second time in less than two weeks the pump prices of gasoline, diesel and kerosene by P1 a liter over the weekend.

The latest oil price hike, the 10th since the start of the year, was initiated by Pilipinas Shell Petroleum Corp., Total (Philippines) Corp. and Flying V at 12:01 a.m. yesterday, followed by Petron Corp., Chevron Philippines Inc. and Eastern Petroleum Corp. at 6 a.m.

Unioil Petroleum Philippines Inc. implemented the same price adjustments at 12:01 a.m. today.

Data from the Department of Energy showed the regional benchmark Dubai crude surged to an average of $111.85 a barrel in May from last month’s average of $103.41 a barrel.

Dubai crude hit a record-high of $116.35 a barrel on May 8.

The price of unleaded gasoline based on the Mean of Platts Singapore (MOPS) benchmark for refined petroleum products soared to $122.37 a barrel in the May 1-9 period from $118.08 a barrel last month.

MOPS-based diesel skyrocketed to an average of $146.34 a barrel in the first nine days of May from the April average of $141.98 a barrel.

In a a recent presentation to oil industry stakeholders, Shell Companies in the Philippines country chair Edgar Chua said local oil firms had yet to recover their fuel procurement costs over the past weeks, with under-recoveries now reaching as high as P6-P7 a liter.

More adjustments

“On the basis of today’s prices, both international and at local pumps, selling prices are around P7 a liter lower than the cost. The public can expect more adjustments over the next few weeks, primarily for diesel,” he said.

“The P7 a liter that has to be recovered assumes (an exchange rate) of P41.50 to a dollar. If the foreign exchange continues to deteriorate, we’ll have to add that, on top of the adjustments,” he said.

World oil prices continue to climb due to the Organization of Petroleum Exporting Countries’ reluctance to hike production. The weak dollar and supply disruptions in Nigeria also contributed to the price escalation.

Since the beginning of the year, gasoline, diesel and kerosene prices have risen 10 times for a total of P6 a liter.

The latest price adjustment has brought the prices of premium unleaded gasoline to between P47.17 and P51.65, diesel to between P39.91 and P44, and kerosene to between P44.30 and P49.80 a liter, inclusive of the 12-percent valued-added tax.