Oil firms are implementing a hefty price increase effective Tuesday.
They said in separate announcements that gasoline prices will increase by P1.45 per liter, diesel by P2.05 per liter and kerosene by P2.05 per liter.
Seaoil, Total, Caltex, Pilipinas Shell, PTT Philippines, Phoenix Petroleum will implement the price adjustment at 6 a.m. of October 5.
This is the sixth consecutive week of oil price increase. Oil firms adjust their prices weekly to reflect movements in the world oil market.
The latest price increase resulted to the year-to-date adjustments to stand at a total net increase of P16.55 per liter for gasoline, P15 per liter for diesel, and P12.7 per liter for kerosene.
The Department of Energy (DOE) said the supply in the world market would not be able to serve demand in the months to come. “Aggressive demand in the fourth quarter is seen to reach as much as 103 million barrels of crude oil per day while supply is only about 100.32 million barrels per day. Clearly,this Platts projection shows a supply deficit of around 2.91 million barrels per day,” it said.
It also monitored that there is no expected additional supply from Opec, which will enforce only the 400 thousand barrels increase per month from August to December 2021.
Also, the higher economic activity has been adding pressure to the supply.
Image courtesy of Nonie Reyes