By Joann Villanueva/PNA
MANILA — Local pump prices are set to rise again on Tuesday (March 26) as oil supply in the global market dips due to more production cuts.
At least three oil companies have already announced that their gasoline products will increase by 65 centavos per liter and diesel by 10 centavos per liter effective 6 a.m. tomorrow.
Oil firms carrying kerosene will likewise raise its price by 10 centavos per liter.
Other domestic oil companies are expected to make similar price adjustments at around the same time.
These adjustments are in line with what is happening overseas due partly to output cuts by major oil producing countries.
Last week, the Department of Energy (DOE) said supply from Saudi Arabia declined by 336,000 barrels per day (B/D) so far this month.
“Further cuts on exported crude oil from Saudi Arabia are expected in April 2019, with the announced reduction of an additional 635,000 B/D,” it said.
Another factor is the sanctions by the United States on Venezuela and Iran, which burdened supply by about 1.1 million B/D.
“This has already resulted in recent cuts of US oil reserves, causing the overall increase in crude prices,” the DOE said.
Scheduled shutdown of the oil processing facilities in Japan and China for maintenance works are also expected to further result to lower oil supply, which in turn, would increase prices.
