Price hike in gas, diesel expected

With the recent increase in prices of liquefied petroleum gas, drivers are wary that oil companies will also hike prices of gasoline and diesel.

Antonio Pogado, chairman of the Nagkahiusang Drayber sa Sugbu, said that in fact, they are expecting a series of oil price hikes as prices of oil products in the world market start to go unstable.

Pogado said that they expect price of oil and petroleum products to go up in the first quarter of this year. He said diesel price is now pegged at around P34 per liter while gasoline price is pegged at between P36 and P38 per liter.

He added that once prices of oil products increase, drivers would be the most affected because they are the regular and biggest consumers of gasoline and diesel.

"There are many reasons why oil price increases, especially the manipulation of big capitalists," Pogado said. Other reasons he cited are unstable price in the world market and the winter season in the cold countries.

The conflict in Nigeria and Iran, among the world's biggest oil sources, could also lead to higher oil price this year.

"Oil companies cut prices of their products a little and hike them high. The poor drivers like us are always in the losing end," Pogado said.

He said that once gasoline price reaches P40 per liter, they would file their petition asking for P1.50 increase on top of the present P6 minimum fare for public utility jeepneys.

"Our petition is ready and we are just waiting for the proper timing," he added.

Consumers were greeted by not-so-happy New Year this year as oil firms raised prices of liquefied petroleum gas by P1.12 a kilogram on January 2 to reflect the increase in international prices.

The price adjustments in LPG products of major oil players effectively jacked up LPG prices by P12.32 per 11-kilogram cylinder, inclusive of the 12-percent value-added tax.

According to data from the Department of Energy, the international contract price for LPG soared to $527.50 per metric ton this month from $490.50 in December. When oil firms last jacked up LPG prices in September, the international contract price for the product surged to $560.90 per metric ton. This then fell to $483.50 in October, prompting a price reduction that month. The price further fell to $464 in November. - Wenna A. Berondo