DOE: Small, gradual oil price hikes seen until December

Metro Manila (CNN Philippines, September 19) — The Department of Energy (DOE) said small and gradual oil price hikes will be seen until December due to lower supply in the global market.

DOE's Oil Industry Management Bureau Director Rino Abad said this is due to production cuts by major global oil players, including the Organization of Petroleum Exporting Countries Plus, China, and Russia.

Less supply means higher prices, he said, which will be worsened by a higher demand expected during "'ber' months.

"What’s worse, recently itong recent ministerial meeting nila, September, sinabi na po nila na hindi na lang po hanggang September iyong pagbabawas na iyan, diretso na po iyan until the end of the year," Abad said.

"Pero paliit na nang paliit ang ini-expect na pag-i-increase ng price," he added. "But still nandoon pa rin tayo sa mataas na price kasi wala po tayong ini-expect na pagbaba ‘no. Medyo mahirap sabihin na bababa dahil mayroon pa ring kakulangan."

[Translation: What's worse is that during their recent ministerial meeting, they said this won't end in September, but that it would continue until the end of the year. However, the increases would be smaller. But prices will remain high because we don't expect it to decrease. It's difficult to say it will decrease because there is still a shortage.]

Abad said he is hoping oil companies will give discounts to ease the woes of motorists.

The suspension of the excise tax on petroleum products, he said, is up to the Congress.

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