Oil companies raise pump prices by 50 cents to P1.50

MANILA, Philippines – Shell and Total Philippines Inc. will increase today the prices of its gasoline products by P1.50 per liter and 50 centavos for diesel and kerosene.

Officials said the increase reflected the rise in product costs abroad.

Based on the Department of Energy monitoring report, the month-to-date average price of Asian Dubai crude increased by about $5 per barrel.

Dubai crude is the price gauge of oil refiners.

Similarly, Mean of Platts Singapore (MOPS) gasoline and diesel moved higher in the first week of the month, at $4 per barrel higher than the April average. 

The MOPS is the price benchmark of the country’s oil importers. 

Oil prices jumped on the first day of last week’s trading in tandem with a buoyant Wall Street, kept afloat by rising hopes for a global economic rebound that would encourage energy demand.

Reports said Wall Street and other global markets got a lift from an upbeat report on Chinese manufacturing which fueled a strong rally in Asia and US housing data that raised hopes for a global economic recovery.   

The upsurge continued into mid-week trading, shooting up to a 2009 high Wednesday, despite expectations that a key report would show rising crude inventories in major consumer US.  

Market analysts noted that the combination of strong equity markets and a weaker US dollar continue to support the oil price.

Last week’s average Dubai crude price increased by more than $5 per barrel. Similarly, MOPS gasoline and diesel increased by $4 per barrel, with both products posting average price levels of more than $60 per barrel.  

Analysts, however, did not expect a sustained oil price rally, as they believed prices would drop soon.

Others said that while it is conceivable, it is unlikely that the Oil Petroleum Exporting Countries (OPEC) cartel would cut production by enough to raise prices.  

OPEC ministers are scheduled to discuss oil production levels on May 28 at a gathering in Vienna. – Donnabelle Gatdula