OIL prices are on the rise again.
Effective on December 20, the price of gasoline will increase by P0.40 per liter, diesel price will go up by P0.70 per liter and kerosene will jack up by P0.60 per liter.
As of press time, Pilipinas Shell, PTT Philippines, Phoenix Petroleum and Flying V have announced they will implement the price adjustment at 6 a.m. on Tuesday. Other oil firms are expected to follow suit.
This is the fifth price increase for gasoline and the fourth for diesel and kerosene since November 21.
On December 13 oil firms implemented an increase of P1.40 per liter for both gasoline and diesel. Kerosene increased by P1.45 per liter during the week.
The price movements on December 13 brought corresponding increase in the year-to-date adjustment in gasoline to P7.04/liter and diesel to P8.58/liter.
Based on monitoring of the Department of Energy (DOE), higher oil prices in the world market came after the Middle East-led Organization of Petroleum Exporting Countries (Opec) and other exporters led by Russia over the weekend reached their first deal since 2001 to cut output by almost 1.8 million barrels per day to reduce in oversupply and prop up prices.
Non-Opec producers have agreed to cut 600,000 barrels per day beginning in January, which will come on top of the 1.2 mb/d cut from Opec.
In Asia gasoline market ended with firm spot demand on strong buying interest, although traders are beginning to see increased regional supplies in January. Oversupply situation in the gas-oil market may continue to overshadow regional requirements, thus pockets of demand deemed insufficient to support the market.
Overall, Dubai crude increased week-on-week by almost $4 per barrel. MOPS gasoline and diesel also increased by about $4.40 and $4.20 per barrel, respectively.