The Department of Energy said Wednesday the recent oil price hike of P1 per liter for gasoline and P0.75 per liter for diesel and kerosene reflect the higher prices at the world market.
Shell raised prices 12:01 a.m. December 29 followed by Chevron Philippines (Caltex) and Total Philippines at 6 a.m. Other oil firms have not raised prices as of press time.
The oil firms said the recent oil price hike reflects the higher prices in the international market.
Energy Undersecretary Jay Layug said the increase in domestic pump prices "were driven by price increases in international market due to cold weather in North America prompting higher oil consumption and high demand for diesel in Asia."
He said the Organization of Petroleum Exporting Countries has not yet announced if it will increase production.
"With finite supply, increase in demand creating pressure in oil prices," Layug said.
DOE said in its monitoring report last December 21 that the price of diesel slightly broke the $ 100 a barrel level.
It said this was due to the the strong demand for heating fuels in the US northeast region, Europe and other freezing areas around the globe.
It said analysts polled by Dow Jones expect the energy markets to continue to tighten through 2011 as economic recovery gains momentum.
"This will help strengthen the recovering demand and is a key reason why we see crude oil prices heading towards $ 100 dollars a barrel next year," it said.
Oil firms also raised the price of unleaded gasoline and diesel by P1.25 per liter last December 14 to reflect the higher prices in the world market during the first week of the month.
They now reflect movements in oil prices on a weekly basis. (PNA)
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Topic: Philippine Fuel Price Reflects World Market (Read 903 times)