Local oil retailers have raised their prices for the third consecutive week.
Seaoil and Caltex increased per liter prices by P1.30 on gasoline, P1 on diesel and P1.35 on kerosene.
PTT also adjusted per liter prices upward by P1.30 on gasoline and P1 on diesel.
Today’s adjustments were mainly attributed to China’s termination of strict COVID-19 control measures which is expected to boost fuel demand in the world’s largest fuel importer. Sentiments were also buoyed by optimism that central banks will soon start tapering off their high interest rates.
The Department of Energy (DOE) said as of January 26, the latest average Manila price per liter of gasoline (RON95) is at P69.15, diesel at P66.45 and kerosene, P77.88.
Latest DOE data as of January 24 showed year-to-date adjustments stood at a total net increase of P5.90 per liter for gasoline, P2.05 per liter for diesel and P3.20 per liter for kerosene.
Reuters reported that as of Friday last week, Brent futures settled at $86.66 per barrel while US crude ended at $79.68 a barrel.
Analysts said the increase was also driven by the expected decision of the Organization of the Petroleum Exporting Countries and its allies in a scheduled meeting this week to not change its strategy on crude production levels.
The report said the increase could have been much higher if not for indications of a strong Russian oil supply.
Meanwhile, the United States Department of Agriculture (USDA) said in a report dated January 26 the Philippine government is currently studying higher ethanol blends in gasoline on a voluntary basis at up to 20 percent, well beyond the current 10 percent mandate.
USDA said the move is in line with the recent statement by the Bangko Sentral ng Pilipinas that the country is overly reliant on refined petroleum product imports, aside from an advice given to the DOE during a Senate Committee on energy meeting to consider higher blends.
“Until local ethanol production scales up, a voluntary Philippine National Standards for a 20 percent blend would force imported refined petroleum products to compete with imported ethanol for 10 percent of the total blended gasoline pool and have the effect of both immediately lowering pump prices as well as providing a safeguard against future oil price and supply shocks,” the report stated.
Meanwhile, the Kilusang Magbubukid ng Pilipinas (KMP) said the government must remove value added tax (VAT) on petroleum products to ease the burden of consumers before approving a refund of VAT of visiting foreign tourists.
In a statement, Danilo Ramos, KMP chairperson, said oil revenue losses can be offset by suspending the corporate income tax cuts, noting that reducing indirect consumption taxes such as on oil and increasing direct taxes on income makes the tax system “more progressive.” – Jed Macapagal
