Oil firms hike prices


MOTORISTS should expect higher fuel costs on Tuesday.

On Monday, oil companies announced an increase in pump prices effective at 12:01 a.m. today.

This will be the first increase for March to be implemented by the oil firms.

In separate advisories, Pilipinas Shell, Phoenix Petroleum Philippines and Seaoil said they will raise gasoline prices by 95 centavos per liter and diesel prices by 55 centavos per liter.

There will be no price adjustment for kerosene.

Other oil companies such as Chevron, Petron, PTT Philippines, Flying V, Total and Eastern Petroleum are expected to follow suit but at press time, they have not done so.

According to the oil firms, the recent price adjustment was driven by upward movements in prices of refined petroleum products in the world market.

Last week, oil firms implemented a rollback in prices of petroleum products.

They cut diesel prices by 40 centavos per liter, gasoline by 15 centavos per liter and kerosene by 85 centavos per liter.

With the increase, some transport groups are asking for a hike in minimum fare in public utility jeepneys (PUJs).

Efren de Luna, national president of Alliances of Concerned Transport Organizations, said the P7.50 minimum fare in PUJs should be returned to P8.50 because of a series of oil price increases.

But the Land Transportation Franchising and Regulatory Board maintained that despite the oil price hikes, diesel price is still lower as compared to that recorded in July 2014.

Oil firms suffered a major blow last year as pump prices drastically went down because of volatility of crude cost in the international market.

Crude price tumbled because of failure of the Organization of Petroleum Exporting Countries, which controls nearly 40 percent of the world market, to reach agreement on production curbs.

For 2014, local pump prices went down by an average P15 per liter for diesel, P13 per liter for gasoline and P15 for auto LPG.


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