Oil Firms Announce Major Price Hike to Start 2025

Motorists will face higher fuel costs this week as oil firms implement a significant pump price hike starting Tuesday, January 7, 2025.

Price Adjustments

Major retailers including Chevron (Caltex), Petron, Seaoil, and Shell announced the following increases per liter:

• Gasoline: +₱1.00
• Diesel: +₱1.40
• Kerosene: +₱1.00

Cleanfuel, Petro Gazz, and Unioil will implement similar adjustments, excluding kerosene, which they do not carry.

• Implementation Time:
  • 6:00 AM on January 7 for most firms.
  • Cleanfuel: 4:01 PM on January 7.

Other companies are expected to follow suit.

Factors Driving the Increase

The Department of Energy-Oil Industry Management Bureau (DOE-OIMB) attributes the price hike to several global factors:

• Extended production cuts by oil-exporting countries until April 2025.
• Increased demand in the US and Europe due to severe cold weather.
• Geopolitical risks and ongoing trade tensions.

Previous Week and Year-End Adjustments

• Last week, prices were rolled back:
  • Gasoline and diesel: -₱0.30 per liter
  • Kerosene: -₱0.90 per liter
• In 2024, fuel prices experienced:
  • A net increase of ₱12.75 per liter for gasoline.
  • A net increase of ₱11.00 per liter for diesel.
  • A net decrease of ₱2.70 per liter for kerosene.

Impact on Consumers

This price hike follows a series of rollbacks and is expected to affect motorists and businesses relying on fuel, especially amid ongoing economic pressures.