Oil prices to go up this week

MANILA, Philippines - Oil companies are expected to raise prices this Holy Week, industry sources said yesterday.

However, oil firms have not yet issued their respective announcements as of press time.

PTT said the increase may range between P0.50 to P0.60 per liter for gasoline but it has yet to provide actual figures.

“These are just projections,” a source said.

Another source said local petroleum players are still computing the actual price hike as the appreciation of the peso against the dollar may temper the increase in the price of fuel, which is imported.

If the increase will push through, it would reverse the rollback local petroleum players implemented last week when oil firms cut prices by P0.15 per liter for gasoline, P0.30 per liter for kerosene and P0.35 per liter for diesel.

Oil companies said adjustments in local petroleum prices track movements in the global crude market.

According to the Department of Energy (DOE)’s latest oil price monitoring report dated April 10, gasoline market sentiments were mixed on uncertainties over regional demand.

The DOE, citing data from oil industry data company Platts, said import requirements from Indonesia, Asia’s biggest gasoline importer, remain unclear until next week.

“Meanwhile, Asia could see less cargo from India as more supply is directed to the Mediterranean market – a structural supplier to the Middle East. Lower output from refineries in the Mediterranean region and a higher pull for cargoes from North Africa caused additional tightness amid refinery maintenance season in Asia,” the DOE said.

Nevertheless, Platts further noted an upbeat market for Asian gasoil or diesel amid projections of supply further tightening as more refineries are scheduled for maintenance, the DOE said.

The DOE also hinted in its report that prices may go up on stronger demand.

“About 2.13 million barrels per day or more of crude distillation capacity will be taken offline in May, the peak of scheduled maintenance in Asia. In addition, the summer season looming next month in the Middle East is expected to raise imports of 500 ppm sulfur gasoil from Saudi Aramco to meet their local demand for power generation for air-conditioning use,” the DOE said.