Oil firms warn of further price hikes

MANILA, Philippines - Local petroleum companies have warned of another possible increase in oil prices, citing the trend in the world market.

“If the prices of crude oil in international market would continue, a new round of oil price adjustment may be inevitable. However, let’s just hope that the volatile situation in Syria won’t escalate and spill over that may destabilize the Middle East which we know pumps one-third of the world’s oil,” PTT Philippines spokesman Korawat Sungmongkol said.

PTT, the Philippine subsidiary of Thailand’s biggest oil company, said oil companies have no control over developments overseas but expressed hopes the situation would only be temporary.

Ongoing political tensions in Syria are putting pressure on the world crude market given that the Middle East is a major oil-producing region. Tensions in Syria have already weakened emerging markets’ currencies as a result of speculations of a US-led military strike against Syria, PTT said.

 â€œSince we don’t have control over these developments overseas, what we can do is to continuously monitor the situation, hoping that there would be an immediate resolution to the impasse,” Sungmongkol said.

The price of oil in the world market has surged more than 15 percent in the last three months. Yesterday, it went past $112 per barrel.

Brent oil climbed 0.7 percent to $115.16 that may rise to as high as $150 per barrel if the Middle East conflict disrupts supply, PTT said.

Oil firms raised prices on Aug. 27 to reflect the price movement in the world market as a result of speculations over the civil war in Syria and unrest in Egypt.

The price adjustments in Luzon were as follows: 60-centavo per liter hike for gasoline, 55-centavo per a liter increase for diesel and 90-centavo price hike for kerosene in Luzon.

However, in Visayas and Mindanao, the price hikes were as follows: 20-centavo per liter hike for gasoline, 35-centavo per a liter increase for diesel and 45-centavo price hike for kerosene.