Oil prices to rise again on February 12

MANILA, Philippines – After companies slightly lowered oil prices last week, they will again implement a hike on Tuesday, February 12.

Shell, Caltex, Petron, Seaoil, Phoenix Petroleum, Petro Gazz, and PTT Philippines announced on Monday, February 11, that they will increase prices of gasoline by P0.90 per liter and diesel by P0.55 per liter.

Companies that carry kerosene will likewise increase prices by P0.85 per liter.

The new rates will take effect at 6 am on Tuesday, except for Caltex's which will take effect at 12:01 am.

This is the 5th time fuel prices are going up this year.

The latest increase brought year-to-date adjustments to a net increase of P1.50 per liter for gasoline, P2.45 for diesel, and P2.75 for kerosene.

Common prices of gasoline in Metro Manila range from around P47.60 to P51.50 per liter, while common diesel prices fall somewhere between P40.70 and P42.70, according to data from the Department of Energy.

On top of the increases, all gas stations are expected to pass on to consumers the fuel excise tax hike stipulated in the Tax Reform for Acceleration and Inclusion (TRAIN) law.

The law states that excise taxes on gasoline and diesel would be increased by P2 per liter this year, and will be jacked up further by another P1.50 per liter in 2020.

The additional excise taxes for 2019 will only be suspended if crude prices in the international market hit $80 per barrel. To date, Dubai crude is almost at $60 per barrel. – 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.

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