Another oil price hike set for January 22

Ralf Rivas
The Department of Energy cites weak sentiments in the Asian gasoline market amid excess regional supply

GAS UP. Oil prices will increase once again on January 22, 2019. File photo by Jire Carreon/Rappler

MANILA, Philippines – Oil companies will implement another fuel price hike on Tuesday, January 22, marking the 3rd straight week of increases.

Caltex, Shell, Flying V, Phoenix Petroleum, Total, Petro Gazz, Seaoil, and PTT Philippines announced that they will be imposing a P0.10 per liter increase on gasoline and a P0.40 per liter hike on diesel.

Meanwhile, kerosene prices of Shell, Caltex, Seaoil, and Flying V will be increased by P0.15 per liter.

Most companies said the new rates will be effective at 6 am.

Energy Undersecretary Felix William Fuentebella said the latest price hike is due to weak sentiments in the Asian gasoline market amid excess regional supply.

Data from the Department of Energy (DOE) showed that diesel prices in the country range from P33.45 to P40.98, while gasoline prices range from P40.05 to P53.60.

The DOE said that over 22% or 1,951 gas stations out of 8,630 have already implemented the second round of the fuel excise tax hike stipulated in the Tax Reform for Acceleration and Inclusion (TRAIN) law.

Under TRAIN, the excise taxes on diesel and gasoline would be increased by P2 per liter this year, and will be jacked up further by another P1.50 per liter in 2020.

Price hikes under TRAIN will only be suspended if Brent crude prices soar over $80 per barrel in the global market.

The United States Energy Information Administration projected Brent crude prices to average $60.52 per barrel in 2019, down from the 2018 average of $71.19. –

Ralf Rivas

A sociologist by heart, a journalist by profession. Ralf is Rappler's business reporter, covering macroeconomy, government finance, companies, and agriculture.