Big time fuel price hikes start today

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Motorists are in for a big time increase in fuel prices starting at 6:30 am today after the US filed for sanctions on Russian petroleum products covering a broad range of industry players in the federal state that straddles Eastern Europe and Northern Asia.

Fuel retailers will raise the price per liter of gasoline by P1.65, P2.70 for diesel and P2.50 for kerosene.

Today’s price movements are the biggest so far this year, and stakeholders are blaming the fresh rounds of US sanctions against Russia.

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This is the third successive week of upward fuel price adjustments so far this year totaling a net increase per liter of P3.45 for gasoline, P5 for diesel and P4.30 for kerosene.

“Oil prices increased sharply on worries that the latest round of US sanctions against Russia could disrupt supply and distribution chains, potentially affecting Russian crude exports to top buyers China and India,” said Leo Bellas, Jetti Petroleum Inc. president.

Caltex and Seaoil are among the gas stations that have conveyed their intent to sell gasoline, diesel and kerosene at higher prices, while Clean Fuel, PTT and Jetti carry only gasoline and diesel.

The price per liter of gasoline (RON91) stood at P58.70, diesel at P58.55 and kerosene at P72.73 as of January 14, data from the Department of Energy (DOE) showed. 

In the same period, the department recorded a total net increase of P1.80 per liter for gasoline and kerosene and P2.30 per liter for diesel.

The US filed sanctions last week against two major Russian oil firms, Gazprom Neft and Surgutneftegas, on top of 183 vessels, dozens of oil traders, oilfield service providers, insurance companies and energy officials, according to a report from Reuters. 

Such a move will result in a price increase for crude oil, especially in Asia, it added.

Apart from sanctions against Russia, cold weather now hitting Western countries is pushing global crude prices higher.

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