Oil companies raised their prices for the fourth straight week.
This is the biggest hike so far this year date for diesel and kerosene products.
Seaoil and Caltex increased per liter prices by P2.65 on gasoline, P2.70 on diesel and P2.60 on kerosene.
Clean Fuel and PTT raised prices by P2.65 per liter of gasoline and P2.70 per liter of diesel.
Today’s upward adjustments were mainly caused by fears on the extent of supply disruptions amid the ongoing geopolitical tensions in the Middle East as well as Hurricane Milton’s impact on US fuel demand.
Data from the Department of Energy (DOE) as of October 8 showed Manila price per liter of gasoline (RON91) stood at P54.53, diesel at P51.95 and kerosene at P68.30.
DOE data also showed year-to-date adjustments as of the same date stood at a total net increase of P6.40 per liter for gasoline, P4.05 per liter for diesel but a net decrease of P5.35 per liter for kerosene.
Reuters reported that as of Friday last week, Brent crude oil futures settled at $79.04 a barrel while US West Texas Intermediate crude futures ended at $75.56 per barrel.
The report said this week’s price increase is driven by sentiments on the ongoing feud between Israel and Iran.
It noted that prices may continue to spike especially if Iran’s oil and gas infrastructure will be affected in the event Israel retaliates after Iran launched more than 180 missiles against the former.
The report also cited the possible effects on global fuel prices the effects of Hurricane Milton especially on Florida, the third largest gasoline consumer in the US.
The report said that so far, the only factor pulling down international crude prices is the restoration of crude supply from Libya’s national oil corporation as well as the reported easing of third quarter earnings of major oil companies this year, signifying a low fuel demand for the period.
Rino Abad, DOE director of the Oil Industry Management Bureau, in a message to reporters yesterday, said some companies have requested “leeway” in complying with the higher biodiesel biodiesel blend that took effect last October 1.
Abad said that the increased biodiesel blend to 3 percent (B3) from 2 percent will result in an estimated additional P0.30 per liter cost on diesel.
DOE clarified today’s price increase does not reflect the higher B3 blend.
