Local oil companies are expected to implement a substantial price increases next week to reflect the direction the world oil market taken amid heightened tensions in the Middle East.
A top executive at Jetti Petroleum forecasts an oil price hike of P2.55 to P2.75 per liter for diesel and P2.35 to P2.55 per liter for gasoline based on the first three days of Mean of Platts Singapore trading and foreign exchange average week-on-week.
“Main reason for the increase is the significant spike in crude oil prices due to fear of supply disruption should Israel’s retaliation target of Iran’s oil infrastructure,” Jetti Petroleum president Leo Bellas said.
He said the strong US dollar versus the peso also pushed the increase in pump prices higher.
The oil companies have historically implemented price adjustments every Tuesday.
On Oct. 8, oil firms implemented an increase of P1.20 per liter for diesel and P0.70 per liter for kerosene while no movement was effected for gasoline.
Department of Energy data showed that year-to-date, total adjustment of diesel stands at a net increase of P4.05 per liter while gasoline remains at P6.40 per liter.
On the other hand, kerosene has a total net decrease of P5.35 per liter.
