Local fuel retailers have implemented a big-time price hike after two consecutive weeks of mixed movements.
The adjustments were mainly driven by the market’s expectations the decision of the Organization of the Petroleum Exporting Countries (OPEC) and its allies to increase production targets will not add that much to the global supply that is expected to further tighten with China’s easing of pandemic restrictions.
According to the Department of Energy (DOE), as of June 2, the latest average Manila price per liter of gasoline (RON95) stood at P80.15, diesel at P75.10 and kerosene at P80.57.
Seaoil increased per liter prices by P2.70 of gasoline, P6.55 of diesel and P5.45 for kerosene.
Clean Fuel adjusted per liter prices upward by P2.70 on gasoline and P6.55 on diesel.
The DOE said as of May 31, year-to-date adjustments of petroleum products have amounted to a net increase of P23.85 per liter for gasoline, P30.30 per liter for diesel and P27.65 per liter for kerosene.
Reuters reported that as of Friday last week, Brent crude settled at $119.72 a barrel as US West Texas Intermediate ended at $118.87 per barrel.
The report said last week, US crude booked a sixth weekly gain on prices due to tight supply which prompted talks of possible fuel export curbs or a windfall tax on oil and gas producers in the US.
Analysts said the effects of OPEC and its allies’ decision to hike production targets are still unclear, especially that the group divided the production increase across its members and still included Russia, whose output is falling due to several sanctions.
