Oil firms hike fuel prices

MANILA — Major oil firms such as Petron increased the prices of gasoline by 80 centavos per liter, diesel by 65 centavos per liter, and kerosene by 70 centavos per liter at 6 a.m. on Tuesday, March 8.

Shell, the second most dominant oil player in the country’s fuel market, did not issue an official advisory, but was expected to implement similar price changes. Most fuel sellers import their products and raw materials and as such, their products are subjected to similar price factors such international oil prices, taxes, and foreign exchange rates.

PTT Philippines and Phoenix Petroleum have said they are making similar price adjustments by 6 a.m. Tuesday due to price movements in the world oil market amid speculations of a possible freeze in oil production.

Unioil has said it is implementing similar price adjustments of 80 centavos more per liter of gasoline and 65 centavos more per liter of diesel at 6:01 a.m. of March 8.

Factoring in this week’s price hikes, gasoline prices have decreased by P1.33 per liter and diesel prices have decreased by 5 centavos per liter since January 1, 2016.

Last week, international crude benchmark Brent prices moved to around $37 per barrel, prompting speculation that fuel price declines might be over soon and crude futures might start recovering.

International oil prices had been hovering around the $35-per-barrel level in previous weeks while crude output and drill rig count fell incrementally.

Traders have said investors are a little more confident that the oil price drop has bottomed out, given further expected cuts in U.S. shale oil output, the tight credit market that will make it hard to oil producers to refinance debt for production, and possible improvements in U.S. economic data.

However, not all analysts are convinced prices will start recovering as the Organization of the Petroleum Exporting Countries (OPEC) keeps the world guessing on whether its members will cut oil production to prop up prices or not.

OPEC members such as Venezuela have been pushing for an output freeze but leading OPEC members such as Saudi Arabia seems ready to let the oil price free-fall bottom out on its own.

Still, Saudi Arabia has not ruled out production cuts and even had a meeting with fellow OPEC members. Reports said another meeting between OPEC members such as Saudi Arabia, Russia, Venezuela, and Qatar, together with an unspecified group of OPEC and non-OPEC oil producers, might take place on the proposed production cuts.  SFM