Local fuel retailers have implemented a big-time price hike in petroleum products for the second consecutive week.
The adjustments were mainly caused by rising demand in the United States despite record pump prices, alongside expectations that China’s oil demand will also improve amid growing supply concerns in several countries.
As of June 7, the latest average Manila price per liter of gasoline (RON95) stood at P82.85, diesel at P81.65 and kerosene at P87.27, the Department of Energy (DOE) said.
Seaoil increased per liter prices of gasoline by P2.15, diesel by P4.30 and kerosene by P4.85.
Clean Fuel and PTT also adjusted per liter prices upward by P2.15 for gasoline and P4.30 for diesel.
The DOE said as of June 7, year-to-date adjustments of petroleum products stood at a total net increase of P26.55 per liter for gasoline, P36.85 per liter for diesel and P33.10 per liter for kerosene.
Reuters reported that as of Friday last week, Brent crude settled at $120.07 a barrel as US West Texas Intermediate crude ended at $118.55 a barrel.
The report said the US Energy Information Administration’s (IEA) announcement of an unexpected rise in American commercial crude oil inventories for the first week of June, alongside the record fall of crude in the Strategic Petroleum Reserve were the main drivers of the growth.
Analysts said IEA’s warning that Europe, which sanctioned Russia following its invasion of Ukraine, could face energy shortages next winter also became a factor in the jump of crude prices.
However, experts said the increase could have been much higher if not for the news that US consumer prices accelerated in May which is seen to force the US Federal Reserve to tighten its policy more aggressively. – Jed Macapagal
