MANILA – The fuel price increase implemented by several companies on Tuesday has nothing to do with Holy Week, when many Filipinos are expected to travel, the Department of Energy said.
“Sixty percent [of the price] ay driven by the import cost. So hindi masyadong nakakaapeko po yung ating local event. So ang tinitingnan po natin ay ‘yung nangyayaring US sanctions mula noong Jan. 28, 2019 with Venezuela,” DOE Oil Industry Management Bureau director Rino Abad told GMA News.
“Sa Iran naman, nagkataon din na ngayong April 2019 ay magkakaroon po ng expiration ‘yung eight countries na nakatanggap ng US waiver doon sa Iran sanctions,” he added.
Several oil companies earlier announced an increase in diesel and gasoline prices effective 6 a.m. on Tuesday, April 9, 2019.
In separate advisories, Chevron Philippines Inc. (Caltex), and SEAOIL Philippines Inc. said they will hike prices per liter of gasoline by P0.25, diesel by P0.20, and kerosene by P0.10.
Eastern Petroleum Corp., Petro Gazz, PTT Petroleum Philippines Inc., TOTAL (Philippines) Inc., and Unioil Petroleum Philippines Inc. will implement similar changes, excluding kerosene.
The DOE says that because of the sanctions imposed by the US on Venezuela, the latter has cut its oil export from 1.6 million barrels per day to 980,000 barrels per day last month. Abad says the numbers are expected to go down to “almost zero” in May.
Iran’s export, on the other hand, is expected to go down from 1.1 million barrels per day to almost zero, also in May.
Compounding the problem is Saudi Arabia’s decision to cut its oil production by 635,000 barrels per day this month.
There will still be a supply deficit even with the 600,000 barrels per day of oil coming from the US in July.
“Unfortunately, kapag may kasamang sanctions at restriction ng supply, ang effect po ay papuntang increases ng price,” Abad said.
In fact, world prices of oil have increased.
Gas has gone up by $1 per barrel to reach $75 per barrel now. Diesel, on the other hand, went up by 91 cents per barrel to reach $80 per barrel now. Kerosene, meanwhile, went up by 68 cents per barrel to reach $80 per barrel now.
Abad says the Philippines consumes a total of 480,000 barrels of gasoline, diesel, kerosene and aviation gas per day. Half of the supply is imported.
Fuel-saving tips
To save on oil consumption, Abad advises the public to carpool, as well as to take public transportation or walk if the destination is not far.
Abad also mentioned apps that can help motorists avoid traffic and find cheaper fuel.
Vehicles should also be well-maintained.
Abad, however, debunked the belief that it is better to gas up at night, when petroleum products allegedly expand and evaporate less. “In essence, wala pong technical explanation na makakabawas po ‘yon sa fuel economy ‘yung pag-gasoline sa gabi other than the fact na baka pag gabi, hindi po masyadong matrapik,” he explained. (GMA News)
