Domestic oil companies jacked up the increase in prices of diesel products to P6.85 per liter, P1.00 higher than their previous actual calculation based on the swing of the Mean of Platts Singapore (MOPS) from last week’s trading.

The adjusted price hike for diesel was attributed to premium charges, higher freight costs and coco methyl ester (CME) blend to the commodity.

The price hike for gasoline products had been well-within expectation at P1.20 per liter; while kerosene prices will be rising by P3.50 per liter, based on the pricing adjustment notices of the industry players.

As of this writing, the oil firms that already advised on their price hikes had been Pilipinas Shell Petroleum Corporation, Cleanfuel, Seaoil, Chevron, PTT Philippines, Phoenix Petroleum and Jetti effective Tuesday (October 11); while their industry competitors are anticipated to follow.

The single biggest factor that triggered this week’s hefty price hikes – primarily for the cost of diesel and kerosene products – had been the decision of the Organization of the Petroleum Exporting Countries and ally-producers (OPEC+) for output cutback of 2.0 million barrels per day starting next month.

The main goal of the global oil producers would be to lift sagging prices back to the level of $100 per barrel – following drop to $84 to $85 per barrel in recent weeks.

As of last week, international benchmark Brent crude already had its rebound to $97 per barrel – which is roughly close to the target being set by the global oil cartel on its production cut pact.

The price adjustments this week, primarily for diesel fuel, will almost stamp out the price reductions to this particular fuel commodity in the series of five-week rollbacks that were enforced from September to the first week of October.

With the new round of surge in prices, there is renewed call from the public transport sector to suspend the excise taxes for petroleum products and for the Tax Reform for Acceleration and Inclusion (TRAIN) Act to be amended for that purpose.

Hue and cry on the excise tax suspension for petroleum products first roared last year – that was when prices started climbing beyond $80 per barrel; and that even rang louder when prices surged to as high as $130 per barrel at the escalation of the Russia-Ukraine war in February.

Among Filipino consumers, there is also continuing lament on the unexplained pricing of the oil companies, hence, the Department of Energy (DOE) and Congress are prodded to finally push for amendments in the Oil Deregulation Law so the policy on fuel cost unbundling could finally be implemented.