MANILA, Philippines - Pilipinas Shell Petroleum Corp. and Seaoil Philippines have again raised prices of their pump products.
Shell and Seaoil increased premium unleaded gasoline prices by 50 centavos per liter; kerosene and regular unleaded by 30 centavos per liter; and diesel 60 centavos per liter.
The increase was brought about by the continuing rise in world crude prices.
Prior to the recent price hike, oil companies had already increased seven times and rolled back once the prices of gasoline and diesel.
This brought the total increase for diesel and gasoline to P5.25 per liter and a rollback of 25 centavos or a net increase of P5 per liter.
Oil prices have been rising for months, but they jumped last week as violence gripped Libya.
Shane Oliver, chief economist at AMP Capital Investors said that increasing unrest in North Africa and the Middle East has been a key driver of the latest spike in prices. Indeed, Asian benchmark Dubai crude breached the $100/bbl level on Monday, 21 February 2011 - the first time since September 2008 - and stayed above this level in the trading week.
Market analysts agree that political unrest and rising tensions across the Middle East and North Africa are causing the unprecedented uncertainty in oil markets, more so because eight countries in the world’s biggest oil-producing region are in some stage of upheaval.
Throughout the region, oil production is controlled not by independent companies but by governments — which is one reason why oil prices are so tightly linked to political stability. Thus, as longtime rulers face revolts, fear of what could happen to oil fields, refineries, pipelines and shipping routes is what has driven oil prices past $100 a barrel for the second time in history.