Big-time oil price hikes again next week (Sabong News)

For the 14th time this year, Filipino consumers will have to agonize over massive cost hikes at petroleum pumps due to surging oil prices in the international market. Based on calculation, oil companies will raise gasoline prices by P3.30 to P3.50 per liter while diesel will be on heftier increase of P3.80 to P4.00 per liter, and kerosene prices will likewise climb by P3.40 to P3.60 per liter. Industry players noted that the calculated adjustments are just based on the Mean of Platts Singapore (MOPS) pricing index and have not included yet foreign exchange (forex) rate fluctuation as well as market premium charges. The oil firms are scheduled to implement the price increases on Tuesday, April 26, in line with the routine that the deregulated downstream oil industry has already been enforcing for the domestic market. This round of rally in prices had been attributed to the fresh wave of astronomical spikes in prices in the world market with global benchmark Brent crude inching up to $112 per barrel in initial trading days last week, before dipping to $106 per barrel on Friday, April 22, while Dubai crude, which is the pricing reference for Asian markets, was pegged at $103 per barrel. Last week’s upswing in prices had been mainly attributed to fears that threats on Russian oil ban could disrupt supply flow in oil markets. Nevertheless, that was subsequently eased when member-countries of the International Energy Agency (IEA) had agreed on coordinated release from their strategic petroleum reserves (SPR). The pledge of the IEA countries is for the withdrawal of 60 million barrels from their oil stockpiles over six months. Currently, Japan is taking a prime role by committing 15 million barrels of stock draw from its petroleum reserve. For the Philippine market, a monitoring report of the Department of Energy (DOE) showed that price adjustments since the start of the year incurred net increases of P27.35 per liter for diesel; P21.55 per liter for kerosene; and P15.45 per liter for gasoline. The energy department indicated that it cannot do anything against swelling prices at the pumps, hence at this time, it will be up to the Filipino consumers to practice energy efficiency and conservation when it comes to their fuel consumption. “While the department assures the public that the country’s oil supply remains sufficient, the DOE cautions against the inevitability of domestic price spikes, which continue to reflect upward global market movements,” the agency stressed. Relative to that, the DOE is encouraging Filipino motorists to shave off “extra weight” by buying highly fuel-efficient vehicle, resort to car pooling or commuting, and before hitting the road, ensuring that the vehicle is properly tuned up and the driver or vehicle owner must also employ energy-saving use of the fleet’s ecosystem, including those on airconditioning, proper oil flow, and tires are properly inflated.