MANILA – Another round of pump prices are expected on Tuesday as the international petroleum market braced for a decrease in supply from the United States, particularly in Texas which is currently recovering from Storm Harvey.
In a press briefing held Monday at the Media Center of the Department of Energy (DOE), Assistant Director Rodela Romero of the Oil Industry Management Bureau (OIMB) indicated that 11 refineries in Texas have been totally shut down as a result of Harvey.
The shutdown of these refineries resulted in a loss of 3 million barrels per day, or almost 16 percent of the total demand for the US alone.
“The US demand is higher than their production capability and supply has been cut by 3 million barrels per day. This will definitely drive the demand up in the international market. The impact of this increased demand is beginning to exact its toll on the market now,” Romero explained.
Romero emphasized that the impact of Storm Harvey on the Texas oil industry may take a few more weeks and is likely to make trading in the world petroleum market more volatile and any development in the international market will definitely affect local prices.
“This is why we constantly appeal to the public to be judicious of how they consume petroleum products regardless whether there is a world crisis or not. It is always more prudent to practice fuel efficiency on our own,” Romero said.
Meanwhile, Romero said that the rounds of price hikes may continue indefinitely but since the market is unpredictable and with the possibility of increased production by the Organization of Petroleum Exporting Countries (OPEC), the situation may change.
Consequently, a 40-centavos per liter increase in both gasoline and diesel and a 50-centavos per liter increase in kerosene prices will take effect on Tuesday.
Petron, SEAOIL, Phoenix Petroleum and PTT have announced that they will implement the new prices effective 6 a.m. of Sept. 5. (PNA)
