LOCAL fuel prices are up for the third consecutive week as US crude prices last week jumped the highest since March due to strong global fuel demand caused by the easing of travel restrictions by several countries.
With the rising price of fuel in the international market, the Department of Energy (DOE) plans to pursue a petroleum strategic reserve for the country.
The DOE said the average Manila price per liter of gasoline (RON95) is now at P41.39, diesel at P29.93 and kerosene at P28.37.
Shell and Seaoil adjusted the per liter prices of gasoline by P1.25, diesel by P0.55 and kerosene by P2.35.
PTT implemented an increase of P1.25 per liter for gasoline and P0.55 per liter for diesel.
The said adjustments do not reflect the additional costs due to the 10 percent import duty on imported fuel.
The DOE said the effects of the new import duty will be felt starting next week but these will vary per retail station.
As of May 13, year-to-date adjustments stood at a net decrease of P12.52 per liter for gasoline, P15.09 per liter for diesel and P21.25 per liter for kerosene.
Reuters reported that as of Friday last week, West Texas Intermediate oil rose 6.8 percent to $29.43 a barrel while Brent crude went up 4.4 percent at $32.50 per barrel.
The report attributed the increases to the decision of the Organization of the Petroleum Exporting Countries and other major producers to cut supplies.
But analysts said the market remains cautious and prices may still drop as the pandemic is far from over.
The International Energy Agency (IEA) expects global crude inventories to fall by about 5.5 million barrels per day (bpd) in the second half of the year.
IEA also expects oil demand to fall by 8.6 million bpd for the entire year.
Meanwhile, the DOE said the petroleum strategic reserve is in the works.
DOE Secretary Alfonso Cusi said representatives of the agency, the Philippine National Oil Co. (PNOC) and the Oil Industry Management Bureau (OIMB) met recently to tackle the feasibility of the plan.
Apresentation of possible scenarios and routes to implement the project was provided by the OIMB. Cusi said government is preparing the framework on financial aspects the specific regulations of the stockpiling.
Cusi debunked IEA claims the stockpiling would cost P37 billion.
“We’ll not go to the IEA levels… What we are after is just a strategic reserve to balance volumes, it is for buffer. It will not be as elaborate as what Japan has,” he added.
