OIL prices may go up by P1.20 to P1.50 per liter this week to reflect the movements in world oil prices, a source said over the weekend.
“Our estimates show an increase in the prices of gasoline, diesel and kerosene of P1.20 to P1.50 per liter,” the source said.
He said prices were set to go up amid speculations of a supply cut ahead of the November 30 meeting of the Organization of Petroleum Exporting Countries.
Traders are optimistic Opec members will reach an agreement to cap production at their meeting in Vienna this week.
The source said the peso’s depreciation against the dollar was also affecting oil prices. The peso depreciated to nearly P50 to the US dollar last week.
“Prices will go up due to speculation and the peso depreciation,” the source said.
The Energy department’s latest monitoring showed that Saudi Energy Minister Khalid al-Falih was optimistic about the Opec deal limiting oil production, while Venezuelan President Nicolas Maduro expressed optimism the Opec members were ready to reach a “forceful” agreement.
The oil companies implemented a P0.10-per-liter increase in gasoline prices on November 22, but the prices of diesel and kerosene stayed the same.
The total year-to-date price adjustment for gasoline is P4.14 per liter and diesel at P5.98 per liter.
Diesel sells from P25.75 to P29.32 per liter and gasoline sells from P34.60 to P44.10 per liter.