Fuel prices go up big today

MANILA: After months of languishing at rock-bottom prices, a big hike of fuel prices took effect 12:01 a.m. today, reflecting an increase in the projected price of Brent and West Texas oil in the global market.

Caltex, Flying V, Petro Gazz, Phoenix, Seaoil, and Shell have increased the price of diesel by P1.90 per liter and P2 per liter for gasoline.

Kerosene from Caltex, Flying V, Seaoil, and Shell also went up today by P1.25 per liter.

Aside from an increase in the price of world oil, the price hike is also the market’s reaction to the reduction in oil production that started in May 1, 2020 as agreed upon by the members of the Organization of the Petroleum Exporting Countries (OPEC), OPEC+, and the USA.

Output has been slashed by close to 10 million barrels a day in order to stop the oversupply of oil and slow down the price drop and this will go on until June 2020.

By August all the way to the end of the year, oil production will be cut by 8 million barrels a day. In 2021, it will go down to 6 million barrels per day until April 2022.

The agreement is subject to review in December 2021.

If stocks of these fuel were withdrawn from the warehouse after the publication of this Executive Order by President Duterte, it will also incur a 10% additional import duty in order for the government to fund the social amelioration program.

Also read: Duterte to raise tax on oil products by 10%; gas price up, diesel down