Big-time oil price hike set Tuesday

MANILA — The days of declining pump prices are fading in the rearview mirror, as local oil firms are set to implement a significant oil price hike on Tuesday, which follows on the heels of a minor uptick in prices last week.

In separate messages, oil companies announced a PHP2.30-per-liter increment in diesel prices and PHP 1.40 per liter of gasoline.

According to oil executives, the hike in fuel prices this week does not yet reflect the second tranche of oil excise tax under the Tax Reform for Acceleration and Inclusion (TRAIN) law.

They explained that it was an “abrupt turn-around in world crude prices that triggered the upward price adjustments this week.”

According to industry sources, the benchmark Brent crude touched the USD60-per-barrel level last Friday, which was higher than its previous week’s closing of USD57.60.

Industry sources added that Brent is gaining momentum due to reports that Saudi Arabia will cut its output to ensure that there is no oversupply of oil in the global market. (PNA)