MANILA, Philippines - Pilipinas Shell Petroleum yesterday announced that it would adjust the prices of its petroleum products twice a week to immediately reflect changes in fuel prices in the world market and in foreign exchange.
“Through more frequent and timelier adjustments, we aim to help cushion the impact of higher oil prices on the public,” said Roberto Kanapi, Shell vice president for communications.
“As part of the deregulation process, we constantly assess the needs of our customers and look at ways to best address them,” he added.
Yesterday morning, Shell and Chevron Philippines raised the prices of their gasoline products by 90 centavos per liter and of diesel and kerosene by 70 cents per liter.
As of yesterday, Petron Corp. had not announced an increase in the prices of its petroleum products.
“It seems we won’t move... at least not today,” a company source said.
Other oil players have not announced any increase in the prices of their petroleum products.
Shell said the increase in pump prices “reflects the increase in international product prices.”
Energy Undersecretary Jose Layug said in an interview with state-run radio dzBB that it is likely that there will be a new round of price hikes tomorrow.
After the price hike it implemented yesterday, Shell prices for unleaded gasoline now range from P56.40 to P58.67 per liter; premium plus gasoline, from P61.60 to P62.10 per liter; diesel, from P42.80 to P44.30 per liter; and kerosene, from P49.95 to P51.35 per liter. Chevron gasoline prices will range from P56.10 to P57.28 per liter, and diesel prices from P42.80 to P44.30 per liter. Kerosene prices will range from P49.59 to P55.64 per liter.
Gasoline prices in the world market remain high. Brent crude reportedly rose by $0.26 to the $112 price level.
In the United States, average retail price for gasoline rose about 2 cents to $3.647 per gallon, according to The Associated Press. This is the second highest level ever for this time of year. Gasoline prices were a little higher in 2008.
Oil prices, however, were pushed down as the dollar rose against the euro and other currencies. Oil, priced in dollars, becomes more expensive to buyers with foreign currency as the dollar strengthens.
Oil traders are looking forward to the resumption of oil production in Libya after a Libyan official said on Friday that five foreign oil and gas companies have returned to the country to resuscitate production choked off by civil war and sanctions.
Concerns about the economy, the dollar and increased supply from Libya overwhelmed worries that the interruptions of oil and gas production caused by tropical storm "Lee" in the Gulf of Mexico might squeeze supplies and push prices higher.