Fuel prices going up next week

MANILA, Philippines — Following hefty rollbacks this week, pump prices for petroleum products are expected to increase by as much as P1.10 per liter next week.

Department of Energy-Oil Industry Management Bureau assistant director Rodela Romero estimated an upward adjustment of P0.65 to P0.90 per liter for gasoline. Diesel and kerosene prices, meanwhile, are seen going up by P0.95 to P1.10 per liter.

The estimates were based on the four-day trading in the Mean of Platts Singapore.

“Oil prices surged in the early part of the week, driven by the fear of escalating Middle East tension that could threaten production at one of the world’s major oil sources, as Iran vows retaliation,” Romero said.

Expectations of an easing in US interest rates and worries that subside on the possible US recession were said to have brought an upward pressure on domestic pumps.

“Likewise, OPEC expressed an optimistic outlook on the demand that contradicts the IEA (International Energy Agency),” Romero added.

Last Tuesday, oil companies slashed pump prices of gasoline, diesel and kerosene by P2.45, P1.90 and P2.40 per liter, respectively.

Since January, gasoline and diesel have increased by P7.05 and P4.75 per liter, respectively, while kerosene has declined by P3.15 per liter.