Domestic oil companies are expected to raise diesel prices by as much as P0.50 per liter next week, while gasoline prices may remain steady or see a slight increase due to global political developments and supply disruption concerns.
Leo Bellas, president of Jetti Petroleum, said diesel could increase by P0.30 to P0.50 per liter. Gasoline may see no movement or an increase of up to P0.10 per liter.
However, Rodela Romero, director of the Department of Energy’s Oil Industry Management Bureau, provided a different forecast. Romero projected no adjustment for diesel, a rollback of up to P0.50 for gasoline, and a P0.10 increase for kerosene.
“These estimates exclude the operating costs of oil companies and other premiums,” Romero said.
She attributed the mixed outlook to a global oversupply from non-OPEC economies like the United States, weakening demand as holiday travel winds down, and ongoing uncertainty surrounding tensions in Venezuela, Ukraine, and Russia.
The price indications for the week of Dec. 29 are based on the first four days of the Mean of Platts Singapore—the regional benchmark—and foreign exchange averages compared to the previous week.
“Oil prices have been supported by geopolitical developments as tougher U.S. sanctions enforcement on Venezuela and intensified attacks by Ukraine on Russian oil infrastructure have raised the risk of supply disruptions,” Bellas said.
Bellas added that prices are also being bolstered by the prospect of stricter sanctions on Russia if Moscow does not agree to a peace deal with Ukraine.
On Dec. 23, oil firms cut prices across the board: gasoline by P0.80 per liter, diesel by P1.30 per liter, and kerosene by P1.60 per liter.
