Over 1 Peso Oil Price Hike Set to Execute on February 26

Manila-- Oil prices will increase at above 1 peso and set to be executed tomorrow, Tuesday February 26, 2019, the Department of Energy announced Monday.

The hike was on its 3rd consecutive week reflecting the upward movement of oil prices in the world market.

In an advisory released on Monday, Shell said diesel and gasoline prices will rise by Php 1.45 while kerosene will increase by Php1.35, effective 6am tomorrow.

The same follows with local gasoline stations namely Petro Gazz, Seaoil, Eastern Petroleum, Phoenix Petroleum and Total Philippines.

Credit Image: https://www.rappler.com/business/213303-oil-price-increase-october-2-2018

The above mentioned stations hike set effectivity at 6am aside from The Caltex (CPI) which announced 12 midnight hike implementation.

Earlier, Energy Undersecretary Wimpy Fuentabella explained in an interview with CNN Philippines that the rising oil prices in the international market was due to some global factors.

He explained that oil-producing countries cut their production by 1.2 million barrels per day which has started January due to "supply glut" or overproduction in the last three months of 2018.

He also cited Saudi Arabia's pronouncement that it will have more oil production cuts in the coming months and the U.S. sanction on Venezuela's national oil company amid the political turmoil in the South American country.

However, he clarified that the increase is not affected by the second tranche of the tax reform law, which establishes an additional ₱2 per liter excise tax on diesel and gasoline, ₱1 for every liter of kerosene, and ₱1 for every kilogram of cooking gas or liquefied petroleum gas in 2019.

"Hindi po kasama 'yung tranche 2 sa kwentong 'yan, ang kasama pa lang po d'yan ay 'yung movement sa world market prices," he said.

Fuentebella has sent an appeal to the motorists to be vigilant following the expected price hike.

"We have to be vigilant, we have to know that the retail prices for gasoline stations are different, you may even see  a ₱2 differential in the prices because these retail outlets are also competing for their right share in the market," he said.

Likewise, Energy Secretary Alfonso Cusi has also urged the public to be sensible in the use of energy and fuel amid rising oil prices in the world market.

"We are imploring the public to be conscious of their energy and fuel usage, especially during these times, as world oil prices are steadily climbing to high levels due to economic and geopolitical factors which we are bound to experience as an oil-importing country," Energy Secretary Alfonso Cusi said.

Meanwhile, transport groups were pleading the government to bring back the fare increase to Php10.00 as the oil prices continually rises.

The Federation of Jeepney Operators and Drivers Association of the Philippines (FEJODAP) called on transport regulators to approve their petition for a jeepney fare hike.

"Tunay na reaction talagang kinakailangan bigyang aksyon ni chairman Delgra na ibalik ang piso namin na muling maging sampung piso ang pamasahe. Kung hindi talaga nalulugi ang mga tsuper, hindi naman po kami hihiling," FEJODAP President Zenaida Maranan said.

In response to the proposed petition, the Energy department said that fare increase will be implemented once the oil or crude price bumps to Php46.00.