The Department of Energy (DOE) expects local pump prices to increase by as much as P1.40 per liter on Christmas Eve.
On Friday, DOE Oil Industry Management Bureau (OIMB) director Rodela Romero said that based on the four-day trading in Mean of Platts Singapore (MOPS), the prices of all domestic oil products would go up on Tuesday.
She estimates gasoline will likely increase by P0.35 to P0.70 per liter, diesel by P1.10 to P1.40 per liter, and kerosene by P0.90 to P1 per liter.
The OIMB head explained that several factors contribute to next week’s expected oil price hike, including the stronger dollar and the fall of US crude stocks.
“Final adjustments will be determined by today’s MOPS trading and other operating costs of the oil companies,” Romero noted.
Meanwhile, Jetti Petroleum president Leo Bellas said diesel may increase by P1.40 to P1.60 per liter and gasoline by P0.60 to P0.80 per liter.
Bellas attributed the imminent price increase to the anticipated supply impact of tighter international sanctions against Russia and demand for oil following the US Federal Reserve interest rate cut, among other factors.
He said another factor is the tight diesel and gasoline supply in Asia due to limited exports from China and South Korea, even if this is mitigated somewhat by ample regional stockpile.
On Dec. 17, oil companies implemented a P0.80 per liter hike in gasoline and diesel while kerosene went up by P0.10 per liter.
Year-to-date, total adjustment of gasoline and diesel stands at a net increase of P12.55 per liter and P9.85 per liter, respectively.
On the other hand, kerosene has a total net decrease of P2.55 per liter.
Prevailing retail prices of petroleum products in the NCR for December 10 to 16 showed that gasoline sells from P49.75 to P73.76 per liter, diesel from P48.20 to P69.35 per liter and kerosene from P69.99 to P80.84 per liter.
