Tags: oil price hikes

Analysis | Record oil price hikes: People must rage against neoliberalism

According to the Organization of Petroleum Exporting Countries (OPEC), there is “no physical shortage” of oil. So, what is happening then? As in the case of major oil price volatilities this century, excessive speculation in the oil derivatives markets is pushing up prices, not the disruptions in oil’s actual or physical trading.

Excessive oil price hikes under deregulation worsen TRAIN impact

Looking at the local oil price movement from the start of the year up to May 15, the price adjustments in diesel may have been “excessive” by about P1.03 per liter and gasoline by P1.34 centavos per liter. This resulted in about P53.74 million additional collections every day from diesel and gasoline products for the oil companies. Of this amount, P6.45 million daily go to the Duterte government’s oil VAT collections (on top of its additional revenues from the TRAIN law’s oil excise taxes).