It will be extremely financially draining for Filipino consumers as prices of gasoline will climb by a hefty P2.35 per liter while diesel prices will rise by P1.80 per liter this week.
The price of kerosene will also go up by P1.75 per liter and this will come as a punishing blow not just for households but also for industries relying on this commodity, including those in the fishing sector as well as the aviation industry.
The first oil company to send its cost adjustment advisory was Pilipinas Shell Petroleum Corp. which will be effective 6 a.m. tomorrow.
The actual price adjustments just seesawed slightly from the initial estimates of the oil companies as Friday trading in the world market had yet to be concluded when they hinted of the price trends.
The surge in prices this week is manifestly triggered by the drone strike on the facilities of Saudi Aramco Sept. 14 and its affected production accounts for roughly five percent of world oil demand.
As culled from the monitoring of the Department of Energy, “the drone attack on Saudi Arabia state-run oil giant Saudi Aramco oil processing facilities at Abqaiq and Khurais resulted to damages and crude oil production suspension of 5.7 million barrels per day or nearly 60 percent of the country’s average production.” As of August this year, Saudi Arabia’s production stood at 9.8 million barrels per day.