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.
