Diesel cost to go up by P2.60 per liter, kerosene by P2.80

By Eireene Jairee Gomez, Manila Times

In an advisory, Pilipinas Shell said it will increase the price of diesel by P2.60 per liter, kerosene by P2.80 per liter and gasoline by 70 centavos per liter at 6 a.m. Tuesday. Cleanfuel said it will raise the price of gasoline by 70 centavos per liter and diesel by P2.80 per liter at 4:01 p.m.

Seaoil will also increase the cost of gasoline by 70 centavos per liter, diesel by P2.60 per liter and kerosene by P2.80 per liter at 6 a.m. tomorrow.

Other oil companies are expected to follow suit.

The Department of Energy's Oil Industry Management Bureau Director Rino Abad earlier attributed the hefty increases in pump prices to higher US fuel consumption.

GenSan fishers reeling from oil price increases

By Franz R. Sumangil, Manila Times

A GROUP of 300 fisherfolk in General Santos City has appealed to the government to help them through subsidies amid increases in oil prices.

Ruel Libawan, a member of the Minanga Buayan Fishermen Association, on Monday said his expenses for fuel had increased from P500 a day to P700.

"We went fishing early Monday morning on our motorized bancas but returned with only a small catch. It could not even pay for our gasoline expenses," Libawan noted.

Another member, Guillermo Libawan, said his gasoline expenses for a day were usually an average of P500 but now would amount to P1,000.

"We have no catch yet as we are afraid to go far into the sea as we might run out of gasoline. We hope the government can help us," Libawan added.

He said he has not yet heard of any government subsidy that could help them.

Dominic Salazar, president of the Soccsksargen Federation of Fishing and Allied Industries Inc. (SFFAII), called for the incoming Marcos administration to suspend the implementation of value-added tax and excise tax.

Salazar said fishing companies and other local fisherfolk have been suffering from spikes in operation costs as a result of continuing increases in oil prices.

He said the SFFAII has been meeting with the city government and other national agencies for possible remedies.

PH petroleum group backs government-run crude oil reserve

Salazar, also the president of the tuna fishing group South Cotabato Purse-Seiners Association, also said they might be able to sustain operations if the value-added and excise taxes are temporarily suspended.

During the 20th National Tuna Congress in 2018 hosted by the SFFAII, industry players passed a resolution urging the Office of the President to revisit the Tax Reform Acceleration and Inclusion Law.

In particular, they called for removal of the "excise tax on petroleum products that are directly used by the masses, otherwise, exempt such products from being subjected to excise tax, provided the same [products] are used for fishing and fishery activities."

Companies to implement oil price hike anew

By THIRD ANNE PERALTA-MALONZO, SunStar 

PETROLEUM companies announced on Monday, April 18, 2022, another increase in fuel prices.

Companies will implement an additional P0.45 per liter for gasoline and kerosene and P1.70 per liter for diesel.

Caltex Petroleum Corporation will implement the price adjustments at 12:01 a.m. of April 19, while Shell Philippines and Seaoil will have it effective 6 a.m.

The Cleanfuel price increase will be effective at 4:01 p.m. Tuesday, April 19.

The Philippines is experiencing a series of oil price hikes due to low supply as an effect of the ongoing invasion of Russia in Ukraine.

This has also resulted in the price increase of basic commodities.Last March, the National Government started with the distribution of fuel subsidy for the transportation and agriculture sectors, which are badly affected by the looming crisis.

To cushion the impact especially to the poor families, President Rodrigo Duterte has ordered the distribution of additional P500 monthly cash aid to selected families.

The government earlier said it is coming up with a more solid and long-term response to the fuel crisis that will benefit the people, especially the poor.

The Department of Energy said that in the event that Dubai crude reaches $120 per barrel, gasoline prices may reach P78.33 per liter, while diesel may increase to up to P68.97 per liter. (SunStar Philippines)

Oil prices go up Tuesday

By: Danessa Rivera - The Philippine Star 

MANILA, Philippines — Oil prices will be raised for the fifth straight week on Tuesday.

In its oil price forecast, Unioil Philippines said both diesel and gasoline fuels would be increased by P0.70 to P0.80 per liter.

Global oil prices started the past trading week on a weak note as talks of a rate hike by the Federal Reserve spooked the market, Reuters reported.

Brent crude broke the $90-per-barrel level for the first time in seven years on Wednesday due to tight supply and the rising political tensions between Russia and Ukraine, the wire service said.

At the end of the trading week, global oil prices still recorded its sixth weekly gain, driven by concerns over geopolitical issues such as the attacks on the United Arab Emirates by Yemen’s Houthi group and a possible military conflict in Ukraine.

Data from the Department of Energy showed year-to-date adjustments stand at a total net increase of P4.95 per liter for gasoline, P7.20 per liter for diesel and P6.75 per liter for kerosene

Weekly oil price hikes: Profit-making or genuine market dynamics?

by Manila Bulletin

As consumers complain of dizzying hikes in oil prices, or at times, unsatisfied at the amount of rollbacks in recent weeks, the oil companies are consequentially suspect of profit-taking.

The deregulation of the downstream oil industry is already traversing roughly 23 years — yet the fires of controversies are still very much focused on the same concern — pricing.

Battle lines though may have been shifting a bit as industry competition gets tougher and the players’ trump card now hinges more on aggressive strategies to corner patrons and gobble up rivals’ market shares.

And in a legitimate sense of price competition, that would be a very acceptable proposition. However, recent swagger of big-time price hikes undoubtedly snitched thunders, and tugged all the other industry players into the ‘defensive’ side. Subsequently, politicians as well as advocacy groups are back in vilifying them – some want freeze in price hikes; while lawmakers and the Department of Energy (DOE) have been batting for more transparent pricing; hence, they’re urging the oil companies to itemize the cost components of their products retailed at the pumps.

With prospects of economic recovery post-COVID, the main question in consumers’ mind is: how are prices headed in the coming days? No one has a crystal ball; but there are pricing benchmarks and intervening factors that the industry has been analyzing weekly relative to their price adjustments.

The industry previously reached a consensus on weekly price movements referencing on the Mean of Platts Singapore (MOPS) or the moving average of prices of oil commodities traded in Singapore. Even refiner Petron Corporation adheres to MOPS-based pricing because that assures it of competitive pricing versus finished product importers.

Another factor influencing price movements is the fluctuation in peso-dollar exchange rates. Beyond these, competitive forces could be held as the strongest element affecting price movements. For example, if an oil company estimates price hike to be at P1.00/liter but its competitor station nearby is selling even lower, that player will be forced to match the price of the other firm so it will not lose customers – in the context of market competition, that is typically called “destroyer pricing.”

And since the Philippines is heavily dependent on importation for its oil supply, it is inextricably hostage to developments that have been affecting supply-demand balance and international price swings that are either triggered by geopolitical factors (i.e. weather conditions, terrorist assaults in oil-producing countries) or market speculation (including economic recovery forecasts). Other pricing pressures are traced to fluctuations in the consumption or the rise-and-fall in oil inventories of major economies, like the United States and China, which are closely monitored as these affect market fundamentals especially if there are depressing news, such as the lingering impact of the pandemic and slower economic growths.

So why would an oil company choose to stay in the market amid the rough patches? Beyond business, perhaps, it is because of the challenge of providing Filipinos such a basic commodity and in becoming part of an industry that supports the economic growth of the country.