Two oil firms hike fuel prices

At least two oil companies raised their fuel prices yesterday citing movements in the world market.

The PTT announced Monday night that it will increase its gasoline, diesel and kerosene products yesterday, according to a dzBB radio report.

The PTT said it increased gasoline by 25 centavos per liter, 55 centavos per liter for diesel and 35 centavos per liter for kerosene.

According also to the Petroleum Price Watch, Shell also implemented a similar price hike yesterday

The increase of domestic oil prices were expected following weeks of softness as global output appears steady despite surging demand from growing economies such as China—leading to concerns of an oil supply squeeze.

Yesterday’s fuel price increase by an average of 50 centavos per liter were expected, industry sources said.

The estimated price increases will range from 45 to 55 centavos per liter for diesel and from 25 to 55 centavos for gasoline.

Excluding expected adjustments this week, the year-to-date net increase for gasoline and diesel stand at 69 centavos per liter and P2.23 per liter, respectively.

Amid the market buzz, transport groups have expressed concern over the price hikes this week.

In a statement, the militant transport group Piston said oil prices should remain low due to expected weakness in US demand as a budget standstill has prompted the world’s largest economy to suspend non-essential government services.

The Department of Energy’s Oil Monitor noted that supply concerns had eased over diplomatic developments in oil-producing Iran and the ongoing US government shutdown, which began on Oct. 1.

But China thirsts for more oil. Increasingly consumer-driven economic growth in the world’s No. 2 economy had it overtaking the United States as the largest oil buyer in the international market. As China’s industries and motorists demand more fuel for power and for transport, global supplies are in for a squeeze, according to analysts. /Inquirer.net with GMA report