Gas prices up in Luzon

MANILA, Philippines - After putting off a price hike in Luzon last week in the aftermath of Tropical Storm Maring, local petroleum players yesterday announced an increase in gasoline prices in Luzon only.

Chevron Philippines, which sells the Caltex brand, said it would impose a 60-centavo price hike per litter of gasoline, 55 centavos per liter of diesel, and 90 centavos per liter of kerosene.

The price adjustment would take effect today.

Fernando Martinez, chairman emeritus of the Independent Philippine Petroleum Companies Association and chief executive officer of Eastern Petroleum, said this week’s adjustment is the one deferred from last week.

“This looks like the one that’s supposed to be last week and a little this week due to the peso depreciation,” Martinez added.

As of press time, other oil firms have yet to make similar announcements.

Last week, local petroleum players announced a 40-centavo price hike in gasoline but only in Mindanao and Visayas and not in Luzon, which was hardest hit by the storm and monsoon rains.

Oil firms also imposed a 20-centavo price hike for diesel and 45-centavo increase for kerosene.

The Department of Energy (DOE) had hoped that last week’s supposed price hike would not be carried through this week.

Zenaida Monsada, director of the DOE’s Oil Industry Management Bureau, however conceded that adjustments are due to market forces.

She said there is a threat of supply disruption from Egypt, which is in the midst of a political turmoil. This has been putting pressure on gas prices.

Egypt is not a major supplier but it is host to oil transport facilities such as pipelines, she said.

With this week’s increase, the common price of gasoline is now at P52.15 per liter while diesel is at 44.30 per liter, based on the Department of Energy’s latest price monitoring report dated Aug. 13, 2013.