MANILA, Philippines – The “Big 3” of the local oil industry raised their pump prices by 50 centavos per liter again yesterday, citing rising global crude costs.
Petron Corp., Pilipinas Shell Petroleum Corp., and Chevron announced the price hike a day after smaller oil firms bared similar price adjustments.
Petron officials said the latest price hike reflects the rise in crude costs in the international market.
“Dubai is averaging $94.86 in March versus $90 in February,” a Petron official said.
The recent increases in pump prices came despite the 50-centavo cut in tariff on imported petroleum products last March 1.
The government has allowed the tariff rate cut to cushion the impact of rising global crude costs. The Department of Energy reviews and sets the tariff cut every month based on the price of crude in the international market.
The DOE has set the trigger point for reducing tariff from three percent to two percent at $83 per barrel for Dubai and $105 for MOPS-diesel. MOPS stands for Mean of Platts Singapore. The figures include freight and insurance costs.
The trigger for reducing tariff from two percent to one percent is at $92 per barrel for Dubai and $110 for MOPS-diesel.
For zero tariff, the trigger mechanism is at $103 per barrel for Dubai and $115 per barrel for MOPS-diesel.
Based on DOE monitoring, the February average price of Asian Dubai crude increased by about $3 per barrel over the January average. Likewise, gasoline and diesel averaged $5 per barrel more than the previous month’s levels.
The price of liquefied petroleum gas (LPG) or cooking gas is also expected to rise in view of the higher contract price for LPG from $803.50 per metric ton in February to $823.50/MT this month.