Gasoline prices up by P0.85/liter; diesel by P0.30/liter

Published January 11, 2021, 1:23 PM

by Myrna M. Velasco

Consumers will experience another pinch in the pocket this week as the price of gasoline will rise by P0.85 per liter; and diesel by P0.30 per liter, as announced by the industry players.

Kerosene, which is the other fuel commodity retailed at the pumps, will also increase by P0.25 per liter, according to the oil companies.

MB file photo. (Mark Balmores)

As of press time, the oil firms that already sent notices on their pricing adjustments had been Pilipinas Shell Petroleum Corporation, Seaoil, Cleanfuel, PetroGazz and Total effective on Tuesday (January 12); while their competitor-companies are anticipated to follow.

Factoring in the first adjustment in the initial week of January, pump prices in the Philippines have already risen by P1.30 per liter for gasoline products; P0.60 for diesel products; and P0.65 per liter for kerosene products.

The overall market prognosis for the global oil industry this year will be incessant increases – given that the sector will be coming from a slump in 2020 due to movement restrictions of people and the stalled economic activities ignited by the pandemic.

Last week, rally in world oil prices had been noted because of the ‘surprise’ decision of Saudi Arabia to enforce 1.0 million production cuts by February to March this year.

Despite continuing lockdowns in Europe, it is seen that other markets were buoyed up, as even draw from US crude inventories had been higher than expected.

The Asian market, in particular, is also expected to be on continuing rebound – with its key four markets of China, India, Japan and South Korea – leading the charge on demand build up.

The rollout of Covid-19 vaccine in many parts of the world will expectedly stir up market fundamentals in the coming weeks and months, hence, there are also anticipations of persistent hikes in pump prices.

As of last week’s trading, international benchmark Brent crude already surged past US$55 per barrel; while Dubai crude, which is a pricing reference for Asian markets, hovered at US$53 per barrel.