Consumers will have to brace for an oil price hike next week by as much as P1.10 per liter to reflect the movement of prices in the world oil market.
Department of Energy director Rodela Romero said that based on the first four days of trading in Mean of Platts Singapore, the benchmark of oil importers, domestic pump prices will likely go up on Tuesday.
She said there will be an increase across all petroleum products with gasoline by P0.65 to P0.90 per liter, diesel by P0.95 to P1.10 per liter and kerosene by P0.95 to P1.10 per liter.
“Oil prices surged at the early part of the week driven by the fear of an escalating Middle East tension that could threaten production in one of the world’s major oil sources as Iran vows retaliation,” Romero said.
“The easing of the US monetary policy and the fear that subsided on the possible US recession added to the bullish part of oil price. Likewise, OPEC (Organization of the Petroleum Exporting Countries) expressed an optimistic outlook on the demand that contradicts the IEA (International Energy Agency),” she said.
The expected oil price hike will put an end to four consecutive weeks of oil price rollbacks for diesel and kerosene and the third for gasoline.
The oil firms implemented a big time price roll back in pump prices on August 13 by P2.45 per liter for gasoline, P2.40 per liter for kerosene and P1.90 per liter for diesel.
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