Oil prices up for 8th week

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Local oil players are increasing their prices for the eighth consecutive week effective today, June 30, on higher global crude costs.

This is attributed to the marginal improvement of the US economy and slight uptick in global fuel demand last week.

According to the Department of Energy (DOE), the latest average Manila price per liter of gasoline (RON95) is at P47.12, diesel at P35.28 and kerosene at P37.09.

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Shell and Seaoil adjusted the per liter prices of gasoline by P0.70, diesel by P0.30 and kerosene by P0.40.

PTT and Phoenix Petroleum increased the cost of gasoline by P0.70 per liter and diesel by P0.30 per liter.

As of June 23, year-to-date adjustments on fuel prices summed up to a net decrease of P5.67 per liter for gasoline, P9.14 per liter for diesel and P13.39 per liter for kerosene.

Reuters reported that as of Friday last week, Brent crude futures settled at $40.91 per barrel while US West Texas Intermediate crude futures ended at $38.49 a barrel.

It noted that the increase was fuelled by the less than expected decline in jobless claims in the US as well as the release of information by location technology company TomTom, that road traffic in some of the world’s major cities in June already returned to 2019 levels.

The report also said the increase in crude prices could have been higher if not for the new coronavirus cases spiking in the US and China as well as on growing concerns about rising American crude stockpiles nearing at record highs.

The said adjustments reflect global pricing and do not include additional costs from the 10-percent import duty that was implemented by Executive Order 113 last May.

The price adjustments due to the tariff vary but the DOE said so far, 2,005 stations of Petron, 647 stations of Pilipinas Shell, 352 stations of Phoenix Petroleum and 52 stations of PTT have reflected the duty on their costs.

Laban Konsyumer Inc. (LKI) has asked the DOE to issue an official guideline on the supposed re-adjustment of tariff on fuel products back to zero percent.

Under Section 7 of EO 113, the additional tax must be scrapped upon the certification of the DOE that a trigger price of Dubai crude reaches $64 per barrel or when the Bayanihan to Heal as One Act ceases to be in effect, whichever comes first. Bayanihan Act lapsed on June 25.

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