FUEL retailers hiked the cost of petroleum products for the second straight week.
This developed as the Department of Energy (DOE) reminded the public the implementation of the 3 percent coco methyl ester (CME) blend in all diesel fuel takes effect today. Previously, the mandate was 2 percent.
Seaoil and Caltex increased per liter prices by P0.45 on gasoline, P0.90 on diesel and P0.30 on kerosene.
Clean Fuel, Jetti and PTT adjusted their prices upwards by P0.45 per liter on gasoline and P0.90 per liter on diesel.
Today’s fuel price movements were mainly fuelled by reports that China’s central bank decided to lower interest rates, which is expected to stimulate the country’s economy. China is the world’s largest importer of petroleum.
Data from the DOE as of September 25 showed Manila price per liter of gasoline (RON91) stood at P55.90, diesel at P51.05 and kerosene at P67.30.
DOE data also showed year-to-date adjustments as of the same date stood at a total net increase of P5.85 per liter for gasoline, P1.95 per liter for diesel but a net decrease of P6.35 per liter for kerosene.
The CME blend will further increase to 4 percent by Oct. 1, 2025 and to 5 percent by Oct. 1, 2026.
The DOE said this increase in the CME blend is expected to benefit coconut farmers, biodiesel producers and other stakeholders in the coconut industry with around 900 million additional coconut nuts needed to produce 100 million to 120 million liters of CME requirements to satisfy a 1 percent mandatory increase.
The agency said consumers in turn, will benefit from an increase in mileage from the average of 10 kilometers per liter of diesel to less than 11 kilometers as an on-road test covering 30,000 kilometers with a 5 percent CME blend also demonstrated an approximate 10 percent improvement in fuel mileage.
Based on the average diesel pump price of P54.70 per liter during the period of September 24 to 30, 2024, the increase in CME blend results in estimated savings of P0.50 per liter which is expected to offset any potential increase in pump prices due to the 1 percent rise in the CME blend.
Reuters reported that as of Friday last week, Brent crude futures settled at $71.89 per barrel while front-month US West Texas Intermediate crude futures ended at $68.18 a barrel.
The report said this week’s price increase could have been much higher if not for reports that the Organization of the Petroleum Exporting Countries and its allies willincrease production by 180,000 barrels per day from December this year.
Analysts warned the continuing tensions among nations in the Middle East may push global crude prices upwards in the coming weeks.
