STORY OF THE DAY


OIL FIRMS IMPOSE BIG-TIME PRICE INCREASE



Motorists would have to endure the impact on the movement of local pump prices once again.

Oil companies on Tuesday imposed a big-time price hike on the prices of their petroleum products effective 6 a.m..

The cost of diesel increased by ₱2.30 per liter, gasoline prices are up by ₱1.40 per liter while the price of kerosene was raised by ₱2 per liter.

Oil firms Caltex and Eastern Petroleum earlier imposed the said hike at 12:01 a.m.

Other companies are expected to follow the price adjustments.

The industry players underscored that the second round of fuel excise tax increases under TRAIN Law has nothing to do yet with the latest increase.

The Department of Energy (DOE) explained the increase was due to oil-producing countries cutting their output to prevent oversupply.

According to Department of Energy-Oil Industry Management Bureau (DOE-OIMB) Assistant Director Rodela Romero, global oil prices were higher due to the resumption of the U.S. sanction against Iran.

The agency has been warning oil firms that they can only impose the fuel tax increases "on new inventories imported or produced from local refineries in 2019," but not on their 2018 inventories.

It can be noted that Brent crude prices cost $60 per barrel on January 11 — higher than last week with $57.