Oil prices increase again after long weekend

CEBU, Philippines - Consumers returned to work yesterday from a long weekend with generally higher oil prices, a continuation of the trend of almost weekly price increases since July.

Major firms Petron Corp., Pilipinas Shell Petroleum Corp., Chevron Philippines Inc., and independent player Total Philippines Corp. implemented mixed price adjustments yesterday.

The oil players rolled back prices of premium gasoline by 45 centavos per liter.

However, they jacked up prices of regular gasoline, diesel and kerosene by 25 centavos, 75 centavos and 60 centavos per liter, respectively.

Independent oil firm Seaoil Philippines Inc. said the same price adjustment is effective today.

“This is to reflect price movements in the international market,” Petron said in a text advisory.

Investors are worried that oil supply might be disrupted as tension is seen to escalate in oil-producing Middle East.

Specifically, Israel is planning to launch a military strike to halt the reported nuclear program of Iran.

Last week, major and independent oil companies increased prices of regular and premium gasoline by P1.30 and P1.20 per liter, respectively.

The firms also marked up prices of diesel by P1.40 per liter and kerosene by P1.50 per liter.

Year-to-date, net increase for gasoline hit P3.98 per liter while diesel recorded a net decrease of 81 centavos per liter, data from the Department of Energy showed.

In a statement, multi-sectoral group Coalition Against Oil Price Increases (CAOPI) warned of a renewed wave of people’s protests in the coming weeks if pump prices continue to escalate.

CAOPI said speculation persists in the world market on a possible tight supply mainly due to continued tensions in the Middle East.

“Instability in the Middle East and North African region will not subside anytime soon and thus will continue to feed high domestic oil prices,” the group said. – Philippine STAR News Service - THE FREEMAN