Oil companies raised prices for the second consecutive week, attributed mainly to the effects of Saudi Arabia’s signals the Organization of the Petroleum Exporting Countries (OPEC) may again cut its output.
Seaoil and Caltex increased per liter prices by P1.40 of gasoline and P6.10 of both diesel and kerosene.
PTT, Phoenix Petroleum and Clean Fuel adjusted per liter prices upward by P1.40 on gasoline and P6.10 on diesel.
The two straight weeks of hike brought the total increase to P2.10 per liter for gasoline, P8.70 per liter for diesel and P8.90 per liter for kerosene.
According to the Department of Energy (DOE), average Manila price per liter as of August 23, stood at P73.55 for gasoline; P74.25 for diesel; and P81.08 for kerosene.
The DOE said as of August 23, year-to-date adjustments of petroleum products summed up to a total net increase of P18.15 per liter for gasoline, P31.70 per liter for diesel and P27.10 per liter for kerosene.
Reuters reported that as of Friday last week, Brent crude futures settled at $100.99 a barrel with US West Texas Intermediate ending at $93.06 per barrel.
The report said Saudi Arabia flagged the possibility of production cuts to offset the return of production from Iran if it successfully strikes a nuclear deal with the US.
It added the United Arab Emirates also expressed support to Saudi Arabia’s pronouncement on adjusting the crude markets.
Analysts said the price increase could have been higher if not for US Federal Reserve chairman Jerome Powell’s statement that a tight monetary policy may be implemented “for some time” in order to fight inflation.
The official said this raises risks of slower growth, a weaker job market and issues for households and businesses.