Oil firms hike prices by P1/liter

MANILA, Philippines - Major oil companies Petron, Shell and Chevron led another round of oil price increases and raised pump prices yesterday by P1 per liter.

Shell raised prices at 1 a.m. while Petron and Chevron followed suit at 6 a.m.

New player Phoenix Petroleum also increased prices by the same level.

Last week, there was a noted rise in crude oil prices, tracking a recovery in global stock markets.

It was noted that the US equities market rallied after debt auctions in Europe bolstered investor confidence in a global economic recovery.

In addition, US crude oil stockpiles fell by 1.4 million barrels last week.

But analysts say that the market is still optimistic about demand as oil traders and analysts see stronger US demand as the summer driving season heats up and distillate use improves.

Gasoline prices in the region also rose due to refinery turnarounds in South Korea and China coupled with import demand for India.

The unexpected drop in US gasoline inventories also supported gasoline prices.

Meanwhile, diesel prices in Asia likewise went up as signs of firm regional demand offset the prospect of increased supplies.

“Demand supported high prices as Indian Oil Corp. and BPCL have been importing large volumes of low-sulfur gas oil from Asia after the country launched its clean fuels program in April and domestic production was insufficient to meet demand,” analysts said.

The oil price hike came after oil firms cut prices by 50 centavos per liter for gasoline and 25 centavos per liter for diesel and kerosene last June 15 to reflect the lower world oil prices.

Unleaded gasoline is currently sold at between P42.20 to P44.50 per liter, diesel at P33.40 to P35.60 per liter and kerosene at P41.28 to P45.80 per liter.