MANILA -- Another oil price hike looms next week as fuel prices in the international market soar due to supply and geopolitical issues.

Based on the first 4 trading days in the Mean of Platts Singapore, gasoline is up by P0.94/L while diesel is more expensive by P0.75/L. Kerosene is also up by P0.93/L.

Jetti Petroleum President Leo Bellas said supply issues are driving prices upward, as sanctions versus Iran oil intensifies and the US moves to add more sanctions for countries buying Venezuelan oil.

Bellas said there is also an announcement that some Organization of Petroleum-Exporting Countries (OPEC) members will cut production, which negates the positive impact of an earlier move to increase oil production.

According to Bellas, it is already safe to expect another price hike with still one day of trading on Friday,

With premium and additional freight costs, the increase for both diesel and gasoline is likely to go beyond P1/liter.

LPG PRICE DOWN

Regasco has already announced a P0.50/kilo reduction effective Saturday, March 29, as the contract price for LPG was released earlier than usual by Saudi Aramco.

Changes in the retail prices of LPG are usually done on the first day of the month. 

Regasco President Arnel Ty explainedf that the contract price for April is actually flat, meaning there should be no price change.

But as the company unbundles its pricing, Ty saif that Regasco has decided to reflect the peso appreciation versus the US dollar equivalent to P0.50/kg or P5.50 for an 11-kg tank.

Other major players have yet to announce their price adjustment, if any.

CALL FOR CONSERVATION

Meanwhile, the Department of Energy has called on consumers in Luzon to conserve energy from 9 a.m. on Saturday, March 29 to 6:30 a.m. on Monday, March 31.

The DOE says South Premiere Power Corporation (SPPC) and Excellent Energy Resources Inc. (EERI), natural gas power generation facilities jointly owned by Meralco PowerGen, San Miguel Global Power, and Aboitiz Power, will conduct a scheduled shutdown.

"This temporary shutdown is necessary to facilitate mechanical activities at Linseed Field Corporation’s liquefied natural gas (LNG) terminal, a crucial step towards completing its first onshore LNG storage tank by the end of April this year," the DOE said.