Oil price hike looms: P0.30

Consumers can expect higher pump prices this week as diesel is poised to go up by as much as P0.30 per liter while some oil firms may start to implement the impact of the additional 10 percent duty on all crude petroleum oil and refined petroleum products.

“Expect fuel prices to have mixed movement next week (June 2- 8). Diesel should increase by P0.20 to P0.30 per liter. Gasoline should go down by P0.20 to P0.30 per liter,” Unioil Philippines said in its weekly price forecast.

Meanwhile, the Energy Department said consumers may feel the impact of the higher duties on pump prices starting this week.

“We will know based on the notification (of the oil firms) on Monday (today),” Energy director Rino Abad said.

Malacañang issued Executive Order No. 113 imposing additional 10 percent duty on all crude petroleum oil and refined petroleum products to help bolster government revenues to fight COVID-19.

Data provided by the department earlier showed the additional 10 percent tariff will result in P0.60 per liter increase for gasoline, P0.84 per liter for diesel and P0.55 per liter for kerosene.

Last May 26, the oil firms implemented a hefty oil price hike of P2.65 per liter for kerosene, P2.10 per liter for diesel and P1.75 per liter for gasoline amid strong optimism on the demand side as many countries reopened.

The country’s petroleum demand reached 171.817 million barrels last year, an increase of 1.8 percent from 168.805 million barrels in 2018.

This translates to an average daily requirement of 470.7 thousand barrels compared to 462.5 thousand barrels per day in 2018.

Topics: Diesel , oil price hike , Unioil Philippines , Rino Abad , Gasoline , Malacañang , Department of Energy
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