New round of pump price hikes to dent consumers’ pockets anew

Published June 7, 2021, 2:19 PM

by Myrna M. Velasco

The pockets of Filipino consumers will be burdened with higher prices again at the petroleum pumps this week; as based on upward adjustments announced by the oil companies.

In pricing notices sent to the media and the Department of Energy, the oil firms indicated that diesel prices will go up by P0.55 per liter; gasoline by P0.20 per liter; and kerosene product prices will climb by P0.60 per liter.

As of this writing, the oil companies that already advised on their price hikes effective Tuesday (June 8) had been Pilipinas Shell Petroleum Corporation, Cleanfuel, Seaoil, PetroGazz, Chevron and PTT Philippines; while their competitors are all expected to follow.

Of the industry players that already announced price adjustments, it was just Cleanfuel that had extended added relief to consumers this week, as it has not implemented any cost upswing on its gasoline products.

The escalation in domestic pump prices this week was still attributed to uptrend in global oil prices that had been mainly driven by the wider economic re-opening of countries with successful Covid-19 vaccination programs.

Additionally, summer driving season in the United States and many parts of Europe is also anticipated to be revved up, and such will then be stimulating further uptick in demand.

Experts are already forecasting climb of global oil prices to a level beyond US$70 per barrel this year, given improving economic data in major economies of the world, primarily China and the US; and the ramping up of manufacturing activities in many parts of Europe.

Given demand growth projections, global oil producers – primarily those with the Organization of the Petroleum Exporting Countries (OPEC) – have also been sounding off readiness to pump in more oil into market as needed.