Oil companies hiked their prices after last week’s rollback.
Seaoil increased per liter prices by P0.20 on gasoline, P1.05 on diesel and P1.20 on kerosene.
Cleanfuel, Jetti and PTT adjusted per liter prices upward by P0.20 on gasoline and by P1.05 on diesel.
Today’s adjustments were mainly caused by the expected increase in global oil demand as markets expect crop production declines will lower biofuels blend that in turn will result to an increase in US corn and soybean prices.
Data from the Department of Energy (DOE) as of June 20 showed Manila price per liter of gasoline (RON95) stood at P61.15, diesel at P54.55 and kerosene at P67.38.
DOE data also showed year-to-date adjustments amounted to a total net decrease of P4.05 per liter for diesel and P6.35 per liter for kerosene and a net increase of P6.35 per liter for gasoline.
Reuters reported that as of Friday last week, Brent crude ended at $73.85 a barrel while US West Texas Intermediate closed at $69.16 per barrel.
Analysts said the increase could have been much higher if not for lingering worries of traders that more interest rate hikes from different central banks will lower fuel demand amid signs of tighter global crude supplies.
Higher interest rates increases borrowing costs for businesses and consumers which in turn may temper economic growth and oil demand apart from recession concerns. -Jed Macapagal
