Consumers can expect an oil price hike of as much as P0.55 per liter next week due to Middle East tensions and global economic concerns.
Department of Energy (DOE) director for the oil industry management bureau Rodela Romero said that based on the four-day trading in the Mean of Platts Singapore, the benchmark pricing for oil importers, prices of petroleum products in the domestic pump are expected to increase.
Romero said gasoline prices may increase from P0.20 to P0.45 per liter, diesel may have no adjustment or may increase by P0.20 per liter and kerosene from P0.45 to P0.55 per liter.
She said prices of liquefied petroleum gas (LPG) or cooking gas will also likely go up as the contract price of LPG went up by $22 per metric ton, which would translate to an increase of about P0.55 to P0.60 per kilo.
LPG prices are adjusted every first day of the month while petroleum prices are adjusted every Tuesday.
Romero said the combination of escalating geopolitical tensions and a sudden halt in Libyan oil production/exports sent shockwaves through global markets which influenced the upward movement in oil prices.
She said the market also reacted positively to the US Federal Reserve rate cut cycle in September, “which has lifted the outlook for global economic activity and crude demands.”
“But the economic worries in the US and China overshadow supply risks that made prices bearish yesterday, Thursday. Final trading, Friday will conclude the adjustments for next week, Sept. 3, 2024,” Romero said.
On August 27, the oil companies implemented a big-time price rollback of P1.15 per liter for gasoline, P1.90 per liter for diesel and P1.85 per liter for kerosene.
Based on DOE computation, total adjustment of gasoline and diesel year to date stands at a net increase of P6.90 per liter and P4.05 per liter, respectively while kerosene has a total net decrease of P4 per liter.
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