Oil firms set to implement 2019's biggest hike so far

MANILA, Philippines (UPDATED) – Local oil firms are set to implement their highest price hike so far this year, a week after two Saudi Arabia facilities were attacked by rebels, as well as continued trade tensions between the United States and China.

Shell, Caltex, and Petro Gazz will be raising gasoline prices by P2.35 per liter, while diesel prices will be raised by P1.80.

Companies carrying kerosene will hike prices by P1.75 per liter.

The new rates will be implemented on Tuesday, September 24. Other oil firms are expected to follow suit.

Cleanfuel initially announced the same adjustments, then retracted its announcement, citing "transmittal error."

It then said that it was raising gasoline prices by P2 per liter and diesel by P1.50 per liter, effective Wednesday, September 25.

Year-to-date adjustments stand at a net increase of P7.86 per liter for gasoline, P5.82 for diesel, and P3.76 for kerosene.

The Department of Energy and the Oil Contingency Task Force (OCTF) already convened to finalize the working draft establishing the inter-agency working group that would implement the country's contingency strategies.

The OCTF is activated in preparation for natural or man-made disasters to address the country's immediate oil supply concerns and, in this case, the impact of the geopolitical and disaster-related events that may cause supply disruptions or sharp volatility in world oil prices.

"We realize the importance of addressing issues beforehand so that the government may have contingency measures to sustain the country's economic growth and provide basic services to the people," Energy Secretary Alfonso Cusi said.

"The activation of the OCTF is vital to our resiliency because we are currently dependent on oil imports," he added. – Rappler.com


Ralf Rivas

A sociologist by heart, a journalist by profession. Ralf is Rappler's business reporter, covering macroeconomy, government finance, companies, and agriculture.