Oil companies are hiking prices effective today, March 16, after a brief rollback last week.
The upward adjustment is attributed to the improvement in the prices of international crude brought by the decision of major oil producers to continue production cuts as well as the rising optimism for a global demand recovery in the second half of the year.
According to the Department of Energy, the average Metro Manila price per liter of gasoline (RON95) is at P48.80, diesel at P40 and kerosene, P46.46.
Shell and Seaoil are raising prices by P1.25 for gasoline, P0.90 for diesel and P0.85 for kerosene.
Clean Fuel is adjusting upwards its gasoline price by P1.25 per liter and diesel, P0.90 per liter.
As of March 9, 2021, year-to-date adjustments on fuel prices summed up to a net increase of P6.10 per liter for gasoline, P5.35 per liter for diesel and P4.50 per liter for kerosene.
Reuters reported as of Friday last week, Brent settled at $69.22 a barrel while US West
Texas Intermediate crude ended at $65.61 a barrel.
The Organization of the Petroleum Exporting Countries and Russia forecast a stronger oil demand recovery in the second half of the year.
Analysts warned sustained higher oil prices will encourage American producers to increase output which could eventually weigh on prices.
JPMorgan expects the United States to produce an average of 11.36 million barrels per day (bpd) of oil this year compared with last year’s 11.32 million bpd.
However, the US government revised its forecasted crude production decline this year to 11.15 million bpd equivalent to a drop of 160,000 bpd, a smaller decrease than its previous monthly forecast at 290,000 bpd drop. – J. Macapagal