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The latest increases do not include the impact of the additional 10 percent import tariff on crude oil and refined products, which should drive an increase of more than one peso per liter.
Petron will implement the following effective price increases at 6 a.m. on May 12: P2 per liter for gasoline, P1.90 per liter for diesel and P1.25 per liter for kerosene. These reflect movements in the international oil market, “said Petron Corp. in its notice.
Leaving Petron aside, Pilipinas Shell Petroleum, PTT Philippines, Phoenix Petroleum Philippines, Seaoil Philippines and PetroGazz announced similar price increases, while the other distributors were expected to follow.
Higher pump prices this week were fueled by optimism as many countries have begun easing their COVID-19 blockades, thereby stimulating demand for oil.
The Organization of the Petroleum Exporting Countries has also begun to implement a production cut of 10 million barrels per day, followed by other oil producers such as Norway, Canada and the United States.
Malacañang issued Executive Order 1113 on May 2, imposing the additional 10 percent tariff to increase the government’s budget to combat COVID-19.
On May 5, the oil companies implemented an increase of P0.75 per liter of gasoline, but the prices of diesel and kerosene fell by P0.10 and P0.60 per liter, respectively.
Total year-to-date adjustments in oil prices are now in a net decrease of P14.52 per liter of gasoline, P16.99 per liter of diesel and P22.50 per liter of kerosene, according to the Department of Energy .
Meanwhile, Pilipinas Shell has assured the Energy department of ample fuel supply even when its Batangas refinery capable of producing 110,000 barrels per day is temporarily shut down for a month starting in mid-May.
Pilipinas Shell says it will temporarily halt its refinery operations due to negative margins stemming from low demand amid the COVID-19 pandemic.
“It is a commercial decision that Shell made, but they assured us of an adequate supply from current stocks and through imports of finished products,” said Energy Secretary Alfonso Cusi.
The other oil refinery in the country is located in Bataan, and is owned by Petron and is capable of producing 180,000 barrels per day.
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