Oil prices could go up by P1.50 next week - DOE

MANILA, May 23 ------ The prices of gasoline, diesel and kerosene are expected to increase by P1.00 to P1.50 next week based on the fourth day of trading in the Mean of Platts Singapore, the Department of Energy said. This is a peso lower than the projected price increases based on the first two days of trading.

DOE Oil Industry Management Bureau director Rino Abad explained that diesel lowered from $163 to $156 per barrel on the fourth day of trading. He said the projected increase may lessen further by P0.50 should the last trading day show consistent price movement. Meanwhile, Abad said 970 gasoline stations have so far joined the government’s P10 diesel subsidy program, used to cushion the impact of the expiring subsidized service contracting program for land-based public utility vehicles (PUVs).

This number is still increasing and may reach more than 1,000 stations next week, as the agency continues to visit and train them on the system used for the subsidy program. “Tinuturuan ho kasi doon sa system ng Land Bank ang bawat gasoline station. Kailangan lang mag-open ng Land Bank account or mag-nominate ng other account from other bank at magkaroon ng tarpaulin,” Abad said.

The director noted that the agency plans to use the system as the standard platform for future subsidies, instead of the traditional cash distribution system.

Source: news.abs-cbn.com