2nd round of oil price hikes set

MANILA, Philippines — Hefty fuel price increases are expected this week as several developments have pushed international crude prices higher.

Some gas stations are also set to impose additional excise tax on fuel, energy officials said.

The price of gasoline could rise by more than P1 per liter and diesel by over P2 per liter, they said.

Based on a monitoring report by the Department of Energy (DOE), several factors have driven global oil prices higher.

One factor is the rise of US crude oil prices on hopes that Washington and Beijing can resolve a trade dispute that has triggered a global economic slowdown.

Oversupply concerns have tapered off due to lower output by the Organization of Petroleum Exporting Countries (OPEC) members as a result of the oil cartel’s production cuts, the DOE said.

In particular, Saudi Energy Minister Khalid al-Falih reiterated OPEC’s commitment to balancing the oil market, the agency said.

Meanwhile, the DOE also took note of the higher price imposed by Kuwait Petroleum Corp. on its new Kuwait Super Light crude loading in February bound for Asia by $0.40 per barrel to a premium of $1.50 per barrel.

If implemented, this would be the second consecutive week local oil companies impose fuel price hikes.

Last week, gasoline prices were raised by P0.80 per liter, diesel by P0.70 per liter and kerosene by P0.40 per liter.

The DOE also expects more gas stations to impose the second tranche of excise tax on fuel starting this week.

Under the second tranche of Tax Reform for Acceleration and Inclusion Act’s implementation, an additional excise tax of P2 per liter will be imposed on diesel and gasoline, and P1 per kilogram on household LPG. 

Earlier, DOE Undersecretary William Fuentebella said bulk of the oil companies are seen to implement the second tranche of excise tax on fuel toward the middle of the month to February.

This is because the government requires oil firms to have a minimum inventory of 15 days.