Oil firms raise pump prices by more than P1.00/liter

Oil companies have announced a price hike today, and it’s a big one. Gasoline goes up by P1.15 per liter, diesel by P1.50 per liter, and kerosene by P1.15 per liter.

Seaoil, Petron, and Total all announced the price increases effective 6 am of February 17, 2015. The price hike was expected, and is the result of lingering supply concerns due to the dramatic drop in US oil drilling rigs in recent weeks and a cutback in the exploration budgets of energy firms triggered another weekly increase in fuel prices, sources said.

Although analysts say the US rig cutbacks had not translated to cuts in production, supply concerns still plagued the market last week and this week.

Another price driver is the lingering threat of an oil production disruption in Iraq. Iraq’s oil fields halted production in the third quarter of 2014 due to attacks by the rebel group Islamic State.

The total year-to-date adjustments in the Philippines are at a net decrease of P1.20 for gasoline and P2.25 for diesel.

On Feb. 10, most oil companies implemented an increase in prices by P2.40 per liter for gasoline, P1.90 for diesel and P2.15 for kerosene.–With report by Riza T. Olchondra