Small oil players to raise pump prices

Key oil players Flying V Petroleum Corp. and Eastern Petroleum Corp. announced an increase in their pump prices of 50 centavos per liter effective tomorrow.

Among the fuel products that will have an increase are gasoline, kerosene and diesel fuel.

In the past week, Petron Corp. and Pilipinas Shell announced they will implement an increase of P2 and P1 per liter, respectively, for the entire month of August.

Total Philippines forecast their price adjustments in the range of P1.35 per liter for the entire month.

The standard rate hike, so far, had a weekly average increase of P0.50 per liter.

On Aug. 3, Dubai crude oil was priced at $70.64 per barrel, which brings the August average to $70.15, higher than the July average of $69.17 and the June average price of $65.22 per barrel.

The record level of Dubai crude hits $72.29 in July 17 this year.

As of Aug. 1, prices of unleaded gasoline with AVSRA ranged from P42.79 to P4450 per liter. Unleaded gasoline was priced between P42.16 to P43.87.

Diesel prices, on the other hand, ranged from P35.29 to P37 per liter.

Kerosene prices also increased from P40.19 to P43 while an 11-kilogram liquefied petroleum gas (LPG) was priced from P460 to P521.16.

The prices of all petroleum products are inclusive of the 10-percent value-added tax (VAT).

Major oil companies Petron and Pilipinas Shell, for instance, have refineries that allow them to access cheaper crude oil for processing.

But new players like Eastern Petroleum and Flying V do not operate a refinery. This, in effect, forces them to import the more expensive finished or refined petroleum products.

Prices of LPG in the world market so far was $547 per metric ton. For the month of July it averaged $502, and in June, it was $470. The highest price recorded was $625.50 in February this year.

Imported finished or refined unleaded gasoline rose to $88.33 per barrel last Aug. 3 after an average price of $85.50 for the month of July.

In June, the average price per barrel was $82.76. The historical high was $90.65 recorded last May 3.

Imported diesel also rose to $88.05 per barrel on Aug. 3 from an average price of $87.37 last June.