Oil prices are expected to go up anew this week by as much as P0.40 per liter, an oil industry player said during the weekend.
“Expect fuel prices to go up next week. Diesel should go up by P0.30 to P0.40 and gasoline should go up by P0.10 per liter,” Unioil Philippines said in its advisory.
This would be the third consecutive weekly oil price increase, reflecting the movement in world oil prices. Oil players historically raise prices every Tuesday.
Last Jan. 15, the oil firms raised pump prices by P2.30 per liter for diesel, P1.40 per liter for gasoline and P2 per liter for kerosene.
READ: Oil price hike set at P4.50
On Jan. 8, oil companies also raised prices by P0.80 per liter of gasoline, P0.70 per liter of diesel and P0.40 per liter of kerosene.
World oil prices have been on an uptrend on hopes that Washington and Beijing can resolve a trade dispute that has triggered a global economic slowdown
Oil prices have also been receiving support from supply cuts started at the end of 2018 by Saudi Arabia and the Organization of Petroleum Exporting Countries.
Oil prices were further boosted by reports that the US oil and natural gas rig count fell by seven to 1,138 during the first full week of 2019 as disclosed by S&P Global Platts Analytics. The total is 95 rigs below the recent high of 1,233 posted in mid-November.
Year-to-date adjustments stand at a net increase of P0.90 per liter for gasoline, P0.50 per liter for kerosene and P1.15 per liter for diesel, according to the latest monitoring of the Department of Energy.
Gas stations are also expected to continue to carry out the second tranche of excise taxes under the TRAIN Law, which will add P2.24 per liter—including a value-added tax—to pump prices for both diesel and gasoline.