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MANILA, Philippines — After a dip in prices last week, the pump prices of petroleum products went up again, with local oil companies announcing big-time increases effective on Tuesday, Feb. 20.
In separate advisories, oil companies said the prices per liter of gasoline climbed by P1.60 and diesel by P1.10. The price of kerosene likewise went up by P1.05 per liter.
Caltex implemented the price adjustments by 12:01 a.m., followed by Shell and Seaoil at 6 a.m., and CleanFuel at 4:01 p.m.
Rodela Romero, director of the Department of Energy (DOE) Oil Industry Management Bureau, explained that the hefty increases were triggered by the halt of shipping in the Red Sea and Suez Canal, as well as the intensifying conflict in the Middle East.
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The Organization of the Petroleum Exporting Countries (Opec) is also expected to extend production cuts of 2.2 million barrels per day throughout the first quarter of the year.
While demand growth slowed in the global market last week, Romero noted that Opec now expected “strong demand” for 2024
Global oil prices are expected to slightly increase this year as attacks are expected to intensify in the Red Sea, a critical channel for international oil trade.
Local oil companies last week slashed the price per liter of gasoline by P0.60, diesel just by P0.10, and kerosene by P0.40.
This resulted in a year-to-date net increase of P4.45 per liter for gasoline, P4.30 per liter for diesel, and P0.45 per liter for kerosene, the DOE said.
DOE data showed the prevailing retail prices in Metro Manila ranged from P53.77 per liter to P83.46 per liter as of Feb. 15.
This was already higher than the prices observed in the first week of January of P50.49 to P78.81 per liter.