Gasoline, diesel prices to go up

MANILA, Philippines - Oil companies were expected to have jacked up local petroleum prices last night after four weeks of oil price cuts, industry sources said.

One source yesterday said oil firms are expected to implement a 50-centavo per liter price hike in diesel and a 25-centavo per liter price hike in gasoline this week, which may start as early as Monday night.

But oil firms may announce a rollback in liquefied petroleum gas (LPG) or cooking gas of at least 22 centavos per kilogram.

The move follows movements in the global crude market and to recover recent price cuts in diesel and gasoline.

In the global crude market, the recovery of the US economy and warmer weather are boosting demand, sources said.

Similarly, the Department of Energy (DOE) said demand is picking up in the US.

“The US Energy Department recently disclosed that demand for gasoline increased by 1.5 percent over the four-week period that ended March 14, compared with the same period last year. Similarly, the decline of 3.1 million barrels, more than three times the decline that analysts have expected, is another sign for greater demand,” the DOE said in its latest oil price monitoring report.

In the Asian market, Platts noted that gasoline continued to face uncertainty going into April on unclear regional supply and demand behavior for the month.

According to its March 25 report, diesel prices range from P41.55 per liter to P45.10 per liter, with a common price of P44.25 per liter. Gasoline prices range from P49.55 per liter to P55.70 per liter, with common price of P52.95 per liter.

On the other hand, auto-LPG prices range from P32.90 per liter to P38.80 per liter, while prices of an 11-kilogram LPG cylinder range from P722 to P832.