September 23, 2019
Oil companies are poised to impose steep price increases this week as the country continues to feel the impact of the drone attacks on one of Saudi Arabia’s biggest oil facilities.
In separate advisories, Petro Gazz and Pilipinas Shell said the cost of gasoline would go up by P2.35 per liter, while the price of diesel will be increased by P1.80 per liter. The price adjustments will take effect on Tuesday at 6 a.m.
Pilipinas Shell, meanwhile, said the price of kerosene would go up by P1.75 per liter, also on Tuesday.
Other oil companies are expected to implement similar price increases.
Last week, industry players jacked up gasoline prices by P1.35 per liter, 85 centavos per liter for diesel, and P1 per liter for kerosene.
The price adjustments were announced as the Energy department and oil companies explore measures to curb the impact of the Saudi attacks on domestic pump prices.
“The DoE (Department of Energy) explored the possibility of staggering oil price increases,” the department said in a statement on Sunday.
Energy officials met with representatives from the Office of Sen. Sherwin Gatchalian, who heads the Senate Energy Committee, the Philippine Institute of Petroleum and other oil firms.
Market players took note of the proposal, but said current pump prices remained lower than 2018 figures. They also pointed out that the country is affected by world oil price volatility.
The meeting also tackled a proposal to increase the minimum inventory requirement to 60 days.
But representatives of oil firms said this would be costly because it would entail the construction of additional infrastructure.
At present, the DoE mandates oil-based generation companies, oil companies, and bulk suppliers and refiners to have inventories good for 15 days to 30 days.
The agency also raised possible contingency measures such as the preparation of oil supply replacement and increasing the biofuel blends to mitigate potential supply shortages.
“We realize the importance of addressing issues beforehand so that the government may have contingency measures to sustain the country’s economic growth and provide basic services to the people,” Energy Secretary Alfonso Cusi said.
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