Oil firms hike prices: P1.20 per liter for gasoline
Oil retailers will impose a new round of price hikes effective on Feb. 17 with Seaoil, Jetti Petroleum and Caltex announcing a P1.20 per liter increase in the price of gasoline, marking six consecutive weeks of upward adjustments.
The prices of diesel and kerosene will also go up by 60 centavos a liter, with both fuel products registering increases for the past eight weeks.
Rodela Romero, assistant director at the Department of Energy (DOE), said late last week that geopolitical tensions continue to pose a risk of a potential supply disruption.
“The strongest factor helping oil prices to move in an upward direction is the geopolitical tensions, particularly in Iran,” the DOE official added.
Risk premium
“The risk of supply disruption through the Strait of Hormuz and the uncertainty around Iran nuclear talks added a risk premium,” she said.
The Strait of Hormuz is a crucial route for oil supply coming from the Persian Gulf in the Middle East.
For gasoline, Jetti Petroleum president Leo Bellas attributed the projected upward price adjustment to the “strong buying interest in the region and seasonal uptick in demand during the upcoming Lunar New Year.”
Last week, oil companies increased pump prices per liter by P1 for diesel and 60 centavos for both gasoline and kerosene.
