The Department of Energy (DOE) said, different crises in some parts of the globe affect the price.
Oil suppliers are now experiencing problems because of the political crisis in Nigeria and Venezuela while wildfire in Canada has affected crude production.
The demand in Asia Pacific also increased because of the hot weather.
Oil prices are also affected because the U.S. Federal reserves are increasing interest due to the growing economy in the country.
OIC Director Melita Obillo explains, “When the economy improve, there will be more jobs, and the demand in petroleum will also increase.”
DOE said, if these events continue, this will be the start of gradual increase in oil prices.
“If only this kind of events, it will not increase this big every week. It will stabilize at a certain level but it will not shoot up,” Obillo further added.
Despite the slow price increase DOE clarified that it is still not the time for a fare hike.
This year alone, prices of diesel and gasoline have increased 10 times and 9 times respectively.
Some transport groups oppose this, the motion to revert the P8.50 minimum fare is still pending.
“Because of the continuous increase, we are appealing that the provisional increase of 8.50 be given to us.” ACTO President Efren De Luna said.
Aside from this, the transport group will appeal to the Duterte administration to dissolve the Oil Deregulation Law.
Next week, transport groups will stage a protest against the one-peso oil price increase. They said, they have suffered great profit loss during vacation due to reduced number of passengers.
(MON JOCSON/UNTV News)
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