Consumers will have to brace for another oil price hike of as much as P1.05 per liter next week, wiping out the rollback on Tuesday due to the volatility in world oil prices.
Department of Energy Oil Industry Management Bureau (OIMB) Director Rodela Romero said yesterday that based on the four-day trading in the Mean of Platts Singapore (MOPS) and various developments in the international oil market, “we will be expecting an increase in the domestic pump price next week.”
Romero said the price of gasoline could increase from P0.70 to P0.90 per liter, diesel from P0.70 to P1 per liter and kerosene from P0.60 to P0.70 per liter.
“These adjustments are attributed to the escalating geopolitical situation around Russia continuing to dominate sentiment; Russia’s oil refinery business are at risk of plant closure amid heavy losses and lower production and news of oil production outage in Norway,” Romero said.
Meanwhile, Jetti Petroleum president Leo Bellas confirmed the possible oil price hike next week based on the movement of MOPS and foreign exchange.
Bellas forecasted a slightly higher price hike of P0.85 to P1.05 per liter for gasoline and P0.80 to P1 for diesel due to “supply concerns triggered by escalating geopolitical tensions (use by Ukraine of Western weapons striking Russian territory and energy infrastructures).”
He said worries of an oversupplied market in the coming months limited gains.
On Nov. 19, the oil firms cut pump prices by P0.85 per liter for gasoline, P0.75 per liter for diesel and P0.90 per liter for kerosene.
Year to date, total adjustment for gasoline and diesel stands at a net increase of P11 per liter and P10.15 per liter, respectively.
On the other hand, kerosene has a net decrease of P0.50 per liter.
