MANILA, Philippines - Oil firms yesterday increased pump prices of fuel for the second straight week as fears of supply disruptions and the drop in US inventories jacked up benchmark international prices.
Major companies Petron Corp., Pilipinas Shell Petroleum Corp. and Chevron Philippines, and independent players Total Philippines Corp., Seaoil Philippines, Phoenix Petroleum Philippines and Flying V increased the price of premium gasoline by 60 centavos per liter.
The firms also increased prices of diesel and kerosene by 70 centavos and 50 centavos per liter, respectively.
There was no price movement for regular gasoline.
“International oil prices averaged higher last week as bombings between Israel and Gaza raised fears of supply disruption if the situation escalates,” the Department of Energy (DOE) said in its Oil Price Monitor.
The unexpected drop in US inventories also resulted in higher prices, DOE added.
For instance, international prices of Dubai crude, gasoline and diesel rose by about $2 per barrel to $108.70, $121 and $127 per barrel, respectively.
Last week, oil firms implemented a big time adjustment, increasing prices of premium gasoline by P1.15 per liter and regular gasoline by 70 centavos per liter and kerosene by 25 centavos per liter.
Since the start of the year, the net increase for gasoline hit P1.96 per liter while diesel posted a net decrease of P1.03 per liter, DOE data showed.
Under Republic Act 8479 or the Downstream Oil Industry Deregulation Act of 1998, oil firms can set the prices of petroleum products based on market forces to encourage competition.