Fuel prices rise amid higher demand

MANILA: The price of gasoline, diesel, and kerosene all went up at 6 a.m. today for the second straight week.

Shell, Cleanfuel, Petro Gazz, Seaoil, and Total have announced that the price of gasoline will go up by P1.25 per liter, diesel by P1.10 per liter, and price kerosene from Shell and Seaoil will also pick up by P0.75 per liter.

This comes as demand continues to rise locally with the opening of the economy in GCQ (general community quarantine) and the addition of more modes of public transportation.

These adjusted prices still do not reflect the temporary 10% duty imposed by President Duterte’s Executive Order (EO) 113. In a message sent by Pilipinas Shell, the extra cost from EO 113 “will be implemented on a per station basis starting June 17.”

While the price of West Texas Intermediate and Brent crude went down by 4.69% and 3.36% respectively, expect fuel prices to trend upwards as Saudi Arabia is set to reduce the amount of crude oil it supplies to Asia, Europe and the USA. This is on top of a one-month extension of the output cuts, which will now end in July.

According to reports, the supply cut for the month of July in Asia will range between 10% to 40%, which would total some 300,000 barrels per day. The USA cuts would be about 35% while Europe’s supply will be down 11%.

Photo from Wikimedia Commons

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