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Oil companies are expected to implement another round of price hikes
at the pumps, with diesel prices expected to take in a heftier
adjustment.
An oil company official, who declined to be
named, on Friday said gasoline prices are set to go up by P1 per
liter and diesel prices by P2 per liter today.
These increases will mark the 18th time that the
oil firms raised fuel prices as world crude prices continue to soar
and the peso dips further against the dollar.
As of June 28, the prevailing pump prices in
Metro Manila have soared to about P58.10 to P60.07 per liter for
unleaded gasoline; P55.10 to P58.30 per liter for kerosene; and
P51.00 to P52.97 for diesel.
The price of an 11-kilogram liquefied petroleum
gas cylinder is about P615 to P671.50.
Because of high crude prices, which recently hit
new highs, the oil firms would have to recover more than P7 per
liter in under-recoveries incurred in June from diesel prices alone.
An analysis conducted by First Metro Investment
Corp. and economist Dr. Vic Abola of the University of Asia and the
Pacific Capital Markets Research Center warned that if oil breaks
“$150 per barrel and reaches $165 per barrel enough to average
$150 per barrel in any given month . . . high-end gasoline would
reach P71 per liter, while diesel could well hit P60 per liter.”
Abola, though, said “There are some flashes of
hope that prices may stabilize toward the end of the year, and start
a slow downward slide by October.”
Data from the Department of Energy said the last
week of June had been a volatile period for the crude oil market as
Dubai, Brent and WTI crude posted historic record price levels,
which analysts described as “the perfect storm.”
All factors worldwide are likely coming
together, pressuring prices to go higher. Tensions in Nigeria, the
Middle East, talk that members of the Organization of
Petroleum-Exporting Countries (OPEC) actually want to lower
production, weather concerns, a weaker dollar and high inflation
make the market worried.
-- Euan Paulo C. Añonuevo
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