Motorists using gasoline on their vehicles will need to shell out more cash this week, as the price of that commodity will go up by P1.15 per liter, based on the pricing adjustment advisory of the oil companies.
For kerosene and diesel products, the price of these fuel commodities will also increase by P1.10 per liter, according to the oil firms.
As of press time, the industry players that already sent notices on their price hikes had been Pilipinas Shell Petroleum Corporation, PetroGazz, Seaoil, Cleanfuel and Phoenix Petroleum effective Tuesday (December 1); while their rival-firms are anticipated to follow their pricing leads.
In addition, the price of liquefied petroleum gas (LPG), which is the main fuel used by households for cooking, is also expected to rise by P0.75 to P1.00 per kilogram, based on the initial estimate of the LPG players.
The uptrend in domestic pump prices had been generally traced to the rally in prices in the international market, primarily buoyed by consistent favorable news on the developments relating to Covid-19 vaccine.
Despite the second wave of infections in various parts of the world – including the United States and Europe, it is seen that the rollout of vaccine next year could spur demand growth in the oil sector,
hence, an industry rebound is already projected.
There are also anticipations that the Organization of the Petroleum Exporting Countries (OPEC) may further stretch the timeframe on production cuts, and this could lift sagging global oil prices.
For the Asian market, demand recovery for fuel commodities is expected as early as next year because this is the region seen leading the way for economic upswing post-pandemic.
With the hefty price hikes this week, consumer advocacy group Laban Konsyumer Inc. has renewed its call on the oil companies “to defer increases for Tuesday (December 1).”
LKI President and former Trade Undersecretary Victorio Mario Dimagiba said the price freeze or ‘no cost movement’ in pump prices must stay for the duration of the state of calamity (SOC) declaration, which shall be for 60 days, especially in typhoon-ravaged areas.
In particular, Dimagiba noted that SOC declaration in Luzon was raised on November 18 this year, hence, he indicated that the prices of LPG and kerosene must not be adjusted until December 3, as prescribed under the provisions of the amended Price Act or Republic Act 10623.
While the Price Act only calls for 15-day price freeze in calamity-stricken areas, the LKI sought that this be extended within the SOC timeframe, which is 60 days; and for commodities to also cover diesel and gasoline, since it’s only kerosene and LPG products that had been mandated under the law.