PH Oil Prices to Rise as OPEC Plus Announces Production Cut

According to announcements from local oil companies, oil prices in the Philippines are set to rise starting Tuesday, April 11.

Caltex will raise gasoline prices by P2.60 per liter, diesel by P1.70 per liter, and kerosene by P1.90 per liter at midnight, while Shell, Seaoil, Petron, and Flying V will follow suit at 6 am. Jetti Petroleum, Petro Gazz, and Unioil will also increase prices at 6 am. Lastly, Cleanfuel will adjust prices at 4:01 pm.

The Department of Energy has attributed the price hike to OPEC Plus, a group of more than 20 countries that are the primary source of oil exports worldwide. OPEC Plus recently announced its plan to reduce oil production by 1.66 million barrels per day, which is intended to help restore oil prices after their value fell due to the recession in the United States.

Economist Michael Ricafort has explained that OPEC Plus members do not want the price of crude oil to drop, and reducing oil production is their way of ensuring that. The reduction in oil production by OPEC Plus member countries will begin next month, and the global price of petroleum is expected to increase, which will most likely impact the Philippines.

The opening of the Chinese economy and the decrease in demand as many countries enter spring also contribute to the movement of oil prices.

On a more positive note, Regasco has announced that it will reduce the price of its liquefied petroleum gas (LPG) by P2.50 per liter starting Tuesday.

This reduction is due to the decrease in the world contract price of LPG caused by low consumption or demand this summer in Asia.

As prices continue to fluctuate, consumers are advised to monitor the prices of petroleum products and plan their purchases accordingly. The Department of Energy has reminded oil companies to abide by fair pricing policies and refrain from overpricing or hoarding petroleum products, particularly during price volatility.