Oil firms roll out 2-phase price hikes

OIL FIRMS have agreed to implement the pump price hike in two tranches this week to lessen the burden on consumers, the Department of Energy (DoE) said on Monday.

- By Sheldeen Joy Talavera and Chloe Mari A. Hufana Reporters

Seaoil Philippines, Shell Pilipinas Corp., Petron Corp., Caltex Philippines, PetroGazz Ventures Philippines Corp., Unioil Petroleum Phils., Inc., Jetti Petroleum Inc., and Cleanfuel said they will increase gasoline prices by P1.75 per liter, diesel by P2.60 per liter, and kerosene by P2.40 per liter, effective June 24.

A second round of price hikes will be implemented either on June 26 or June 27.

Seaoil, Shell, Caltex and Petron said they will raise gasoline prices by P1.75 per liter, diesel by P2.60 per liter, and kerosene by P2.40 per liter on June 26. Jetti and PetroGazz will hike pump prices by the same amount on June 27.

The DoE on Monday said it met with representatives of the downstream oil industry who agreed to a staggered implementation of the big-time price hike this week.

"Our dialogue with industry players today reflects our shared commitment to balance economic realities with the need to shield our people from sudden price shocks, and we are pleased to report that they have responded positively to our request," DoE Officer-in-Charge Sharon S. Garin said in a statement.

Present during the DoE meeting were representatives from Petron, Shell Pilipinas, Caltex, Jetti Petroleum, PetroGazz, Phoenix Petroleum, PTT Philippines, Seaoil, Total, Unioili Petroleum Philippines, Filpride, and Cleanfuel.

The DoE earlier estimated that diesel prices to go up by P4.30-P4.80 per liter; and gasoline by P2.50-P3 per liter this week.

Global crude oil prices surged amid the escalating conflict in the Middle East. After the US struck several nuclear sites in Iran, the latter's parliament is now considering the closure of the Strait of Hormuz, a waterway between Iran and Oman which around 20% of the world's oil passes through, Reuters reported.