Local oil retailers have implemented a price increase in the cost of petroleum products for a third time in a series.
Seaoil and Caltex increased the per liter price by P1.30 for gasoline, P1 for diesel and P1.35 for kerosene.
PTT adjusted its price schedule higher by P1.30 for gasoline and P1 for diesel.
The adjustments were traced in part to China’s abandonment of strict COVID-19 control measures seen to heighten fuel demand in the world’s largest fuel importer and to optimism that several central banks will soon start tapering off their anti-inflation measures.
As of January 26, gasoline (RON95) averaged P69.15 per liter, P66.45 for diesel and P77.88 for kerosene as of January 26 in Manila, according to the Department of Energy (DOE).
The year-to-date adjustments total higher by P5.90 per liter for gasoline, P2.05 per liter for diesel and P3.20 per liter for kerosene based on latest DOE data.
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 also said the increase was driven by the projected decision by the Organization of the Petroleum Exporting Countries (OPEC) and its allies meeting this week to keep their crude production levels where they are.
The local increase would have been much higher were it not for indications of a strong Russian oil supply, the analysts said.
The Kilusang Magbubukid ng Pilipinas (KMP) reiterated the government remove value added tax (VAT) on petroleum products to help ease the pressure on consumers prior to a proposed VAT refund on the purchases of visiting foreign tourists.
In a statement, Danilo Ramos, KMP chairperson, said the proposal betrays “the President’s unending favor to private companies and the private sector over public interest.”
Ramos said the oil revenue losses can be offset by similarly suspending the corporate income tax cut, claiming the indirect consumption tax on oil and increasing the direct taxes on income makes the tax system “more progressive.”
5-WEEK FUEL PRICE MOVEMENT BREAKDOWN
| DATE | GASOLINE | DIESEL | KEROSENE |
| JANUARY 3 | +2.90 | +2.10 | +3.05 |
| JANUARY 10 | -0.75 | -2.80 | -2.10 |
| JANUARY 17 | +0.95 | +0.50 | -0.15 |
| JANUARY 24 | +2.80 | +2.25 | +2.40 |
| JANUARY 31 | +1.30 | +1 | +1.35 |
| TOTAL | 7.20 | 3.05 | 4.55 |
