Consumers can expect a big-time oil price hike of up to P1 per liter on Tuesday to reflect the movement of prices in the world oil markets, according to the Department of Energy.
DOE Oil Industry Management Bureau (OIMB) director Rodela Romero said Friday that based on the 4-day trading in Mean of Platts Singapore, the benchmark pricing for oil importers, consumers are facing pump prices increases across all petroleum products next week.
Romero said gasoline will increase by P0.40 to P0.70 per liter, diesel by P0.75 to P1 per liter and kerosene increase of P0.70 to P0.80 per liter.
She said several factors pushed up world oil prices week on week particularly the decision of the Organization of the Petroleum Exporting Countries and its allies to to extend the 2.2 million barrels of oil production cuts until April 2025.
Romero said news that the US and Europe faced potentially severe cold blasts in January also boosted demand for heating fuels.
“Geopolitical risks and trade tensions may cause short-term oil price volatility. Final adjustments will be determined after today’s trading,” Romero said.
Jetti Petroleum president Leo Bellas forecasts a slightly higher oil price hike for next week.
He said diesel may go up by P0.90 to P1.10 per liter and gasoline by P0.55 to P0.75 per liter.
Bellas said this can be attributed to optimism over China’s economy and fuel demand.
“Shrinking regional supply of diesel and gasoline due to lower outflows from major supplier China has lifted the prices of both products. Limiting further price gains is the sharp increase in US fuel inventories, showing weakened demand,” he said.
On Dec. 31, 2024, the oil companies implemented a rollback on the price of petroleum products. Gasoline and diesel decreased by P0.30 per liter while kerosene decreased by P0.90 per liter.
Year-to-date, total adjustment of gasoline and diesel stands at a net increase of P12.75 per liter and P11 per liter, respectively. On the other hand, kerosene has a total net decrease of P2.70 per liter.
