Caltex Philippines Inc., Pilipinas Shell Petroleum Corp. and Total Philippines were among the first to adjust pump prices. The increases took effect yesterday.
Prices of diesel, regular gasoline and unleaded gasoline went up by 50 centavos per liter from previous prices but the oil companies kept prices of socially-sensitive products such as liquefied petroleum gas (LPG) unchanged.
Caltex raised the price of diesel to P29.75 per liter, gasoline Vortex Silver (unleaded) to P31.64, Vortex Gold (premium unleaded), P32.30 while its LPG remained at P413 per 11-kilo tank.
Shell upped the prices of diesel to P29.95 per liter; Super unleaded gasoline to P31.59, Super Premium to P32.15, Velocity to P32.80, and LPG to P432 per 11-kg tank.
Total also priced its diesel at P29.95 but its gasoline is priced lower than Caltex and Shell, averaging P31.41 per liter.
Other players are expected to follow with similar price increases on their products today.
Oil industry watchers predicted local pump prices would continue to increase along with the continued surge in prices of crude oil on the world market.
But there are signs that crude prices could retreat and ease pressure on local oil companies to adjust their pump prices upwards.
For one, the International Energy Agency (IEA) cut its forecast for oil demand globally, citing cuts in energy prices by China’s government and an emerging buildup of supplies of diesel fuel in the United States.
The US Department of Energy last week said the US crude, gas and distillate stocks remain above year-ago levels. It reported a 3.2 million barrel rise in distillate stocks, twice what was expected as refiners begin building inventories for seasonal demand for heating fuel in the winter season.
The Chinese government, on the other hand, had cut its gasoline and diesel consumption in a bid to discourage importation while encouraging its local refiners to import fuel.
As a result, the IEA trimmed its forecast of global growth in demand for crude oil by 200,000 barrels a day to 1.58 million. China accounted largely for last year’s surge in world oil consumption as its oil demand in 2004 grew 15 percent.
This year, the IEA forecast China’s oil consumption to rise by a low 5.5 percent.
In the Philippines, the spiraling cost of crude prices is worrying economists who are concerned that continuing jumps in local pump prices will raise inflation levels and restrict government efforts to spur stronger economic growth.