OIL FIRMS raised diesel prices today while keeping gasoline and kerosene unchanged.
Petron, Shell, Seaoil, Unioil, Phoenix, PTT and Eastern Petroleum increased the price of their diesel by 30 centavos per liter from 6 a.m.
Energy Secretary Zenaida Monzada said diesel prices were low at the beginning of the trading week but recovered toward the weekend following spikes in orders from India and Vietnam.
She said there was no significant increase in demand for gasoline and kerosene.
Monsada said that a big chunk of hydro power generation capacity in India and Vietnam were hampered by a drought, forcing their shift to oil-based power plants and boosting demand for diesel fuel.
She said the market remained volatile. While the International Energy Agency predicted the current oil supply glut would ease, the Organization of Petroleum Exporting Countries or Opec has consistently said an oversupply situation was continuing with the resumption of Iran’s production and overseas sales. Riza T. Olchondra