Consumers can expect a big-time oil price hike of as much as P2 per liter effective 6 a.m. Tuesday to reflect the movement of prices in the world oil market.
The oil firms announced an increase of P2 per liter for diesel, P1.70 per liter for kerosene, and P1.20 per liter for gasoline.
This is higher than the previous forecast in the wake of “worries that the new sanctions by the U.S. on Russia’s two biggest oil companies will have significant implications on the Asian market as Chinese state oil majors are set to suspend Russian oil purchases and refiners in India are preparing to sharply cut Russian crude imports,” Jetti Petroleum said.
Jetti Petroleum’s Leo Bellas said last week diesel may go up by P1.20 to P1.40 per liter and gasoline by P0.60 to P0.80 per liter on Tuesday.
“Oil prices are higher this week due to concerns that the fresh U.S. sanctions on Russian companies, following sanctions imposed by Britain last week, could lead to tighter physical flows of Russian oil,” Bellas said.
He said this could force buyers of Russian oil to reroute volumes to other sources, causing major disruptions in supply flows.
Rodela Romero, director of the Department of Energy’s Oil Industry Management Bureau, said oil prices will likely go up due to stronger refinery demand.
“Oil soars on prospects of new U.S. sanctions on Russian oil companies (Rosneft and Lukoil) over the war with Ukraine, as announced by President Trump yesterday. Unresolved issues between Russia and Ukraine increase geopolitical risks,” Romero said.
On Oct. 21, the oil firms raised the price of gasoline by P0.10 per liter, diesel by P0.70 per liter, and kerosene by P0.60 per liter.
