Another oil price increase looms

MANILA, Philippines — Higher pump prices of petroleum products are expected to take effect next week. 

Based on the four-day trading of Mean of Platts Singapore, Department of Energy-Oil Industry Management Bureau assistant director Rodela Romero estimated an increase of P0.75 to P0.95 per liter for gasoline, P1.50 to P1.70 per liter for diesel and P1.05 to P1.15 for kerosene. 

Romero said the projection is based on several “relevant news,” such as the drone attacks on Russia’s oil facilities to disrupt supply lines and logistics, and the proposed extension of the Organization of the Petroleum Exporting Countries production cut of 2.2 million barrels per day until the 1st quarter of 2024. 

Causes of the spike can also be traced back to the plans of the US Federal Reserve to reduce interest rates for economic growth and demand for commodities, like crude oil, and the “economic stimulus package to boost China’s economy.”?The official price adjustments will be announced by oil companies on Monday, and will take effect the next day.