P2.14/L increase for diesel by next week

[cyberdoc95]

Big hike in diesel prices seen next week
Posted: 1:27 AM | Sept. 09, 2004

Ronnel W. Domingo
Inquirer News Service

CONSUMERS should brace for another round of weekly increases in pump prices of petroleum products, with the adjustment seen hitting as high as P2.14 a liter for diesel and P0.47 for gasoline, a private watchdog group said.

The price increases could be done in installments that may begin on Monday, said Raul Concepcion, chairman of the Consumer and Oil Price Watch (COPW).


"In accordance with the agreement among President Gloria Macapagal-Arroyo, Energy Secretary Vincent Perez Jr. and the COPW, the price increase will be staggered weekly and will take effect every Monday thereafter," Concepcion said.

The weekly price increases would be calibrated, depending on the movement of prices of crude oil and finished products, he said.

Among oil companies that import finished products, gasoline prices could go up by P0.47 a liter and diesel prices by P2.14 a liter, Concepcion said.

Oil refiners Petron Corp. and Pilipinas Shell Corp. are expected to raise diesel prices by P0.91 a liter but slash diesel prices by P0.63 a liter, he said.

About 70 percent of Petron's and Shell's supplies are locally refined from Middle Eastern crude oil, and 30 percent is imported from refineries in the region, Concepcion said.

He appealed to Petron and Shell, which have between them 80 percent of the Philippine petroleum market, to be sensitive to consumers' plight and not follow the price increases expected of small companies that import finished products.

The price of imported gasoline increased by $4.98 to $51.50 a barrel in August from $46.52 in July, and the price of imported diesel rose by $5.41 to $51.66 in August from $46.25 in July, Concepcion said.

The price of Dubai crude, including the cost of freight, premium and insurance, increased by $3.90 to $38.55 a barrel in August from $34.65 in July, he said.

Concepcion said he was optimistic that crude oil prices had peaked and that increases in October would be moderate.

Fernando Martinez, chairman of the Independent Philippine Petroleum Companies Association, which groups the small importing firms, said Concepcion was "more or less correct in his estimates. The only question now is when and how to implement the increases."

He said this month would likely see a repeat of the past five weeks, when pump prices increased four times.

In the past five weeks, gasoline and diesel prices rose by P1.45 and P1.60 a liter, respectively.

Shell general manager for external affairs, Roberto Kanapi said the oil companies had not fully recovered increased costs in the world market and wanted to have these costs reflected in local prices. With INQ7.net

[boybi]

hindi ko ma-gets ito:

Oil refiners Petron Corp. and Pilipinas Shell Corp. are expected to raise diesel prices by P0.91 a liter but slash diesel prices by P0.63 a liter, he said.

[cyberdoc95]

Originally posted by boybi
hindi ko ma-gets ito:

Oo Nga. I think there is a typo error somewhere. Incomplete ang thought.

[lmp]

ibig sabihin ang diesel will be about 23.50++/liter ano ba yan! mabuti sana kung di na tataas e ang nangyayari ngayon kahit mag-roll back kakaunti lang din naman compared sa tinaas sa price.

[mazdamazda]

on a good note:


OPEC chief wants crude down to $30
Wednesday, September 8, 2004 Posted: 0639 GMT (1439 HKT)


Purnomo says he hopes crude prices will fall to about $30 a barrel.

FACT BOX
NET OIL EXPORTERS
(millions of barrels per day, 2003)
1. Saudi Arabia 8.38
2. Russia 5.81
3. Norway 3.02
4. Iran 2.48
5. UAE 2.29
6. Venezuela 2.23
Source: U.S. Department of Energy June 2004

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Organization of Petroleum Exporting Countries (OPEC)

Purnomo Yusgiantoro

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SYDNEY, Australia (Reuters) -- OPEC may set a new target range for oil prices next week and would like to see crude down closer to $30 a barrel, the head of the producers' cartel said Wednesday.

OPEC president Purnomo Yusgiantoro said oil prices, which hit record levels close to $50 a barrel in late August, were bumped up by $10 to $15 a barrel by political risks and other factors.

"What we see is the political premium between $10 and $15 per barrel," Purnomo, who is also oil minister for Indonesia, said at the World Energy Congress in Sydney.

"If you remove the non-fundamentals, then we hope the price will go down to a level of $30 per barrel.

"The price should not be what it is today," he said.

The Organization of the Petroleum Exporting Countries, which controls more than 50 percent of global crude exports, will meet on September 15 in Vienna to review output policy.

Purnomo said OPEC's 11 members might decide a change to its oil price target of $22 to $28 a barrel at next week's talks.

Under an informal price band mechanism, OPEC can raise or reduce oil production if the price of a reference basket of seven crude grades goes outside of the target range for a specific number of trading days.

The basket price has been above the upper $28 limit since late last year as oil prices have surged on soaring demand and tightly stretched supplies, which have left little leeway for any hiccup in the supply chain.

On Monday, OPEC's reference crude oil price stood at $38.66 a barrel after hitting more than $43 late last month. U.S. light crude was trading at $43.25 a barrel, a little over $6 below the all-time high of $49.40 reached on August 20.

Some OPEC countries -- Venezuela, Libya, Nigeria and Iran -- have said the price target, set in March 2000, should be revised to reflect new market conditions. Qatar was quoted on Saturday as saying $25 to $30 was a fair price.

"We realise that between 2000 and now there has been the change of inflation and the depreciation of the U.S. dollar, so there has to be a different price range today," Purnomo told a news conference.

"There are proposals that have been submitted to us. If you will wait until next week, we hope to get a good decision to provide the public with a new range of oil prices, but today we still are using $22 to $28 per barrel," he said.

The cartel is producing almost 30 million barrels daily, the highest output since the late 1990s, to try to cool world prices, which have surged more than 40 percent since the end of last year.

OPEC's existing production ceiling for the 10 members with quotas, excluding Iraq, is 26 million barrels per day (bpd). Iraqi exports are running at about 1.7 million bpd.

"The world now according to our perception is oversupplied by 2.7 million barrels per day," Purnomo said. "If you do the average, it is 1.5 million bpd during the year 2004."

Purnomo said Iraq's production might rise to Baghdad's target of 3 million bpd after national elections planned for January.

On Monday, Purnomo told reporters in Jakart that oil prices for the September to December period were likely to drop.

Huge demand from the U.S. and China, coupled with fears over terrorism, has pushed prices to two-decade highs this year.

While prices are high, after adjusting for inflation, they are still well below the levels reached in the "oil shock" of the early 1980s.

According to the U.S. Department of Energy, the average price of oil in 1981 was $31.77 a barrel, or about $60 in 2004 dollars. The February 1981 peak price of $39.00 equals about $73.50 today.

[theveed]

Hay... magscoscooter na talaga ako...

may diesel ba ns scooter para mas tipid pa?

[Ungas]

Not fair! Too much raised price on diesels?!? What are they thinking???

I guess we should rename our group from DieselClub.org to UlingClub.org... nah! DC.org rules!!!

[boybi]

how about PadyakClub.org? :bwahaha:

[GlennSter]

babye philippines =)

[tagalnasaabroad]

nahilo ako sa mg P at $ sa news items..!

sarap mag-imagine ng edsa puno ng mga nagbibiseklitahahahahaha...makakalanghap narin ng sariwang hangin..! magbababaan na pati presyo mga like-newng mga kotse..!pagandahan nalang ng kotseng laruan..!

aatras narin kami nito pauwing probinsya..