Consumers can expect higher pump prices this week by as much as P0.40 per liter following reports of a new U.S. stimulus bill signed last week that could prop up demand.
“Expect fuel prices to go up next week (January 5-11, 2021). Diesel should increase by P0.25 to P0.35 per liter. Gasoline should increase by P0.30 to P0.40 per liter,” Unioil Philippines said in its weekly advisory.
The global oil price rally last week, however, was dampened by the rising COVID-19 infections in the US and Europe.
The new strain of coronavirus found in Europe recently has forced other countries to impose lockdowns which could affect hopes of global economic recovery soon amid the rollout of vaccines in many countries.
Meanwhile, the U.S. Energy Information Administration (EIA) forecast for higher crude oil prices in 2021, reflecting its expectation that while inventories will remain high, they will decline with rising global oil demand and restrained OPEC oil production.
EIA forecasts OPEC crude oil production will average 25.7 million barrels per day in the first quarter.
On December 29, the oil firms cut the price of diesel by P0.05 per liter and P0.25 per liter decrease for kerosene. No movement was implemented on the price of gasoline.
These prices resulted in the year-to-date adjustments for a net decrease of P5.96 per liter for diesel and P9.49 per liter for kerosene. Gasoline remained at net decrease of P1.97 per liter.