DOMESTIC oil firms will likely increase their pump prices next week by as much as P1 per liter to reflect the movement of prices in the world oil market due to the rising Middle East tensions.
Department of Energy Oil Industry Management Bureau (OIMB) director Rodela Romero said that based on the four-day trading in the Mean of Platts Singapore, gasoline pump prices will go up by P0.60 to P1 per liter, diesel by P0.10 to P0.50 per liter and kerosene by P0.10 to P0.30 per liter.
Romero said the higher fuel prices are driven by rising tensions in the Middle East where the United States launched military strikes on Houtis, the released of fiscal stimulus measures by Beijing aimed at boosting consumption; and release of US government data showing a draw in fuel inventories.
“Final adjustments will be determined after today’s (Friday) trading in MOPS (Mean of Platts Singapore),” she said.
Jetti Petroleum president Leo Bellas also projected movements in pump prices next week with gasoline increasing by P0.95 to P1.15 per liter and diesel by P0.30 to P0.50 per liter.
“Prices during the week have been choppy but on upward drift, primarily due to the renewed hostilities in the Middle East, pushing the global risk premiums higher, as concerns of oil supply being threatened has become elevated. China’s stimulus plans and data were also bullish price drivers,” he said.
Bellas also said the strong dollar (against a basket of currencies), US Central Bank’s decision to hold interest rates steady, the renewed prospects of a Russia-Ukraine ceasefire, and recession fears due to the tariff wars have been holding oil prices back.
Last March 18, local oil companies implemented a decrease of P0.20/liter for diesel and P0.40/liter for kerosene. There was no adjustment for gasoline.
Year-to-date, gasoline and diesel have a total net increase of P2.15 per liter and P2.85 per liter respectively while kerosene has a total net decrease of P0.70 per liter.