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By Euan Paulo C. Ańonuevo, Reporter
Oil firms are set to impose the sharpest
increase in diesel prices today to recover losses incurred from the
previous months.
An industry official said Seaoil Philippines
Inc., Unioil Petroleum Philippines Inc. and Eastern Petroleum Corp.
are set to increase prices at the pump by P3 per liter for diesel,
P1.50 per liter for kerosene and P1 per liter for gasoline.
Large oil firms Petron Corp., Pilipinas Shell
Petroleum Corp., Chevron (formerly Caltex) Philippines Inc. and
Total Philippines Inc. have yet to make a similar announcement as of
press time, but are expected to follow suit.
The industry official said some oil firms may
opt not to raise gasoline prices after having been able to recoup
underrecoveries.
Last week, for example, Flying V rolled back its
gasoline prices, but it will now be raising diesel and kerosene
prices.
Spiraling oil prices
Today’s price hike will be the 20th fuel price
adjustment implemented by oil firms for the year prompted by high
crude prices in the world market.
As of July 18, the average price of the regional
benchmark Dubai crude averaged at $137.02 per barrel for the month
from $127.82 per barrel in June.
Imported diesel and gasoline averaged at $175.73
per barrel and $142.91 per barrel from $169.36 and $140.30 per
barrel, respectively, over the same period.
Data from the Department of Energy showed that
as of July 12, fuel prices have been ranging from P54.48 to P56.47
for diesel; P58.10 to P60.57 per liter for unleaded gasoline; and
P57.91 to P61.80 per liter for kerosene.
Oil price rebound
In Singapore, oil prices rose in Asia on Friday
after three days of heavy falls that pulled prices down almost $16
on worries over economic growth and slowing demand, dealers said.
New York’s main oil contract, light sweet
crude for August delivery, rose $1.50 to $130.79 a barrel.
The contract lost $5.31 to close at $129.29 on
Thursday at the New York Mercantile Exchange.
Brent North Sea oil for September delivery rose
$1.33 to $132.40 after a drop of $5.12 to $131.07 on Thursday in
London.
“What we are seeing is a bounce-back after
very sharp falls,” said David Moore, a Sydney-based commodity
strategist with the Commonwealth Bank of Australia.
Prices have crumbled since striking record highs
above $147 one week ago.
Prices fall if inventories rise
Wednesday’s fall was largely driven by an
unexpected weekly rise in US oil and gasoline inventories, said
Barclays Capital analyst David Woo.
US government data showed US inventories rose by
3 million barrels to 296.9 million barrels in the week ending July
11, confounding market expectations of a decline of 2.2 million
barrels.
Analysts said the surprise rise in reserves
indicated that record-oil prices are having an impact on energy
demand in a US economy that is already weak.
The United States is the world’s biggest
energy consumer.
Government data showed American consumption of
petroleum products fell 2 percent over the past four weeks, compared
with the same period a year ago, analysts said.
But energy demand is still seen holding up in
emerging economies, notably India and China, they said.
“I think the market is gyrating as it is
trying to reconcile competing pressures in the market,” said
Moore.
Iran factor
Developments in the oil-rich Middle East
continue to be closely watched after an apparent sudden shift in US
diplomatic policy toward Iran announced late Tuesday.
The United States said it was sending State
Undersecretary William Burns to talk between Iran’s nuclear
negotiator, Saeed Jalili and the European Union’s foreign policy
chief, Javier Solana.
The United States and other major powers have
been locked in a long-running standoff with Iran over its nuclear
drive, which they suspect is aimed at making weapons.
Iran has repeatedly refused to heed demands to
suspend uranium enrichment, insisting that its activities are
exclusively aimed at energy production.
Iran is the world’s fourth biggest producer of
crude oil, and tensions over its nuclear effort helped push prices
to record highs recently.
Oil prices had soared after breaking through
$100 at the start of 2008, sparking protests around the world, and
fears for economic growth.
-- With AFP
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