Diesel, gasoline, LPG price hike takes effect this week
Published Apr 29, 2019 12:00 am
By Myrna Velasco
The prices of petroleum products and liquefied petroleum gas (LPG) will increase by almost P1 this week due to escalation in prices in the world market.
(Mark Balmores / MANILA BULLETIN)
As advised by the oil companies, the price of diesel will rise by P0.80 per liter; gasoline by P0.75 per liter; and kerosene by P0.90 per liter.
As of press time, the oil companies that already sent notices on price adjustments include Pilipinas Shell Petroleum Corporation and PetroGazz effective 6:00 a.m. on Tuesday, April 30, while the rest of the industry players are anticipated to follow.
The per-kilogram cost of LPG will be higher this month as indicated by industry players due to the uptrend in Saudi contract prices.
All of these prime commodities in the oil sector have their costs swing depending on the movements of prices in the world market – and that is subsequently reflected in domestic prices. Adding up to the cost movement trigger is the fluctuation in peso-dollar exchange rate, with the value of the local currency depreciating again last week.
Based on the monitoring of the Department of Energy (DoE), the pick-up price of LPG in retail outlets in Metro Manila had been ranging from P615.00 to P800.00 (for the standard cooking cylinder used in households) prior to this anticipated round of adjustment.
The biggest guessing-game in the world market is whether or not the alliance of the Organization of the Petroleum Exporting Countries (OPEC) and Russian-led producers would carry on – and if their agreement on production cuts will stay or they may finally opt to let the market work according to supply-demand dynamics without the ‘market rebalancing mechanism’ being resorted to since the price crash in 2014-2015.
Russia, in particular, is sounding off disinclination to continue with the output cuts beyond June this year as its ally-producers may be losing market with the increasing oil production of the United States.
Market watchers are forecasting a possibility that the Vienna meeting of OPEC and Russia will result in their decision to shore up production and be in tough competition with the US instead.
The prognosis then is for prices to be on the downtrend again – prospectively hitting the level of US$40 per barrel vis-à-vis the projection that oil prices will likely average at US$65 to US$70 per barrel this year.
Persisting as aggravating factor had been the toughened sanctions on Venezuela and Iran enforced by the United States.
As of the last trading day last week, prices had already softened with signs that OPEC would be keeping productions afloat so it can keep pace in a competition with the US-led growth of market inventory.
(Mark Balmores / MANILA BULLETIN)
As advised by the oil companies, the price of diesel will rise by P0.80 per liter; gasoline by P0.75 per liter; and kerosene by P0.90 per liter.
As of press time, the oil companies that already sent notices on price adjustments include Pilipinas Shell Petroleum Corporation and PetroGazz effective 6:00 a.m. on Tuesday, April 30, while the rest of the industry players are anticipated to follow.
The per-kilogram cost of LPG will be higher this month as indicated by industry players due to the uptrend in Saudi contract prices.
All of these prime commodities in the oil sector have their costs swing depending on the movements of prices in the world market – and that is subsequently reflected in domestic prices. Adding up to the cost movement trigger is the fluctuation in peso-dollar exchange rate, with the value of the local currency depreciating again last week.
Based on the monitoring of the Department of Energy (DoE), the pick-up price of LPG in retail outlets in Metro Manila had been ranging from P615.00 to P800.00 (for the standard cooking cylinder used in households) prior to this anticipated round of adjustment.
The biggest guessing-game in the world market is whether or not the alliance of the Organization of the Petroleum Exporting Countries (OPEC) and Russian-led producers would carry on – and if their agreement on production cuts will stay or they may finally opt to let the market work according to supply-demand dynamics without the ‘market rebalancing mechanism’ being resorted to since the price crash in 2014-2015.
Russia, in particular, is sounding off disinclination to continue with the output cuts beyond June this year as its ally-producers may be losing market with the increasing oil production of the United States.
Market watchers are forecasting a possibility that the Vienna meeting of OPEC and Russia will result in their decision to shore up production and be in tough competition with the US instead.
The prognosis then is for prices to be on the downtrend again – prospectively hitting the level of US$40 per barrel vis-à-vis the projection that oil prices will likely average at US$65 to US$70 per barrel this year.
Persisting as aggravating factor had been the toughened sanctions on Venezuela and Iran enforced by the United States.
As of the last trading day last week, prices had already softened with signs that OPEC would be keeping productions afloat so it can keep pace in a competition with the US-led growth of market inventory.