JANUARY will likely close with another wave of oil price hike, the Department of Energy (DOE) said Friday.
Based on the four-day trade monitoring in the Means of Platts Singapore, DOE Oil Industry Management Bureau assistant director Rodela Romero said gasoline prices were expected to decrease by P0.05 per liter, while diesel and kerosene would go up by P0.80 and P0.45 per liter, respectively.
Romero said the costs of operating companies and other premiums were not yet included in the numbers, which she previously explained cost around P0.40 to P0.50.
They also have not reflected the adjustments on the last trading day on Friday.
Meanwhile, Leo Bellas, president of Jetti Petroleum, said the estimate was based on price movement indications for the week of Jan. 26, 2026. Apart from the Mean of Platts Singapore, the forecast was also based on foreign exchange averages for the first four days of this week versus last week’s full-week average, he said.
Romero explained that the looming price increases were due to US President Donald Trump’s tariff threats on Europe over their opposition to a US takeover of Greenland.
Trump has backed down on threats to seize the Arctic island by force from ally Denmark and retracted his tariff threat.
But Romero said the price hikes were not likely to be reversed by the recent development, while gasoline instead has a high chance of being pulled up to an increase.
The geopolitical tensions between war-conflicted countries also pull the prices up, she said.
Romero added that China was seeing an improving demand following the growth in its gross domestic product. With AFP
From his viewpoint, Bellas said diesel may increase by P1.20 to P1.40 per liter and gasoline by P0.30 to P0.50 per liter. Upward pressure is being supported by worries of tightening near-term supply following the temporary halting of production at two large oilfields in Kazakhstan and export constraints in the Black Sea.
“Also pushing oil prices higher is demand optimism from China following the better-than-expected economic growth data, as well as the stronger economic growth forecast for 2026 from the International Monetary Fund,” Bellas said.
He noted that oil prices have remained volatile despite the easing of worries over potential supply disruptions from the Middle East. Lingering concerns of a U.S. military intervention in Iran remain a factor. With AFP
