MANILA, Philippines – Petroleum pump prices went up by another 50 centavos yesterday, and motorists are expected to pay more for fuel in the coming weeks, as global crude costs remain high despite their having slid down from record levels.
“It is unfortunate that unless there is a significant drop in MOPS (Mean of Platts Singapore) prices, there will be no alternative but to have a series of price increases until such time we attain our viable margins,” Flying V, an oil firm controlled by the Villavicencio family, said in a statement. MOPS is the pricing benchmark used by local oil importers like Flying V.
The latest hike in pump prices came despite the 50-centavo tariff cut on April 1.
The Department of Energy (DOE) said that based on its monitoring, the March average price of Asian Dubai crude increased by about $7 per barrel over the February average.
Gasoline and diesel rose by an average $5 per barrel and $16 per barrel, respectively, from the previous month’s levels.
However, the contract price for liquefied petroleum gas (LPG) or cooking gas decreased by $11.50/metric ton from $823.50/MT in March to $812.00/MT this month. Household LPG is 30 percent propane and 70 percent butane.
The DOE noted that world oil prices have slightly slipped from record highs posted since the second and third week of March as the US dollar gained ground, making commodities such as energy futures less attractive to investors seeking a hedge against inflation.
Week-on-week average price of Dubai crude has fallen by about three percent but gasoline and diesel prices have increased by about two percent and one percent over the previous week.
Analysts attribute the oil price instability to effects of weaker-than-expected energy inventories in the US, broad weakness of the US dollar, and long-term concerns over the ability of producers to meet rising energy demand from China and India.
OPEC president and Algeria’s oil minister Chakib Khelil has expressed belief that oil prices this year will remain high – fluctuating between $80 and $110 per barrel.
But some analysts believe the market is beginning to appreciate fundamentals such as rising supplies and falling demand. The second quarter of the year is typically the weakest for petroleum demand.
US oil supplies have risen in recent weeks as the country’s appetite for oil and gasoline has fallen sharply since January. The US is the world’s biggest consumer of oil.
Meanwhile, Malacañang has assured the public that there would be no long power interruptions during the scheduled maintenance shutdown of the Malampaya natural gas pipeline.
“There’s no such thing as 12-hour power interruption in Luzon,” deputy presidential spokesman Lorelei Fajardo said, quoting National Power Corp. corporate communications manager Dennis Gana.
Malampaya operator Shell Petroleum Exploration Corp. earlier said repairs could take a day or as long as six months. – With Marvin Sy