Hefty oil price hike seen next week

MANILA, Philippines — Pump prices for petroleum products are expected to climb between P0.60 and close to P2 per liter next week, the Department of Energy (DOE) said.

Based on the four-day trading, DOE-Oil Industry Management Bureau assistant director Rodela Romero estimated an upward adjustment of P0.60 to P0.85 per liter for gasoline and P1.45 to P1.70 for diesel.

The price of kerosene is expected to have the biggest increase of P1.85 to P1.90 per liter.

Romero said the adjustment in domestic pump prices was due to “developments in the international oil market.”

She said among the factors that contributed to the upward price trajectory are the upbeat global oil demand forecasts this year, coupled with a sharper than expected decline in US crude inventories.

OPEC maintained its forecast of robust growth in world oil demand this year, as it expected travel and tourism to drive consumption.

The US Energy Information Administration, meanwhile, said that global oil demand for 2024 will likely fall above estimates.

Uncertainties over the timing of the US central bank’s policy easing, and the “reduced Saudi exports to China and potential US reserve purchases” also put pressure on domestic oil prices, Romero added.

Last Tuesday, oil companies implemented rollbacks of P0.60, P1.20 and P1.30 per liter on the pump prices of gasoline, diesel and kerosene, respectively.

Year-to-date, the total adjustment of gasoline and diesel stands at net increases of P6.05 and P4.25 per liter, respectively. 

On the other hand, kerosene has a net decrease of P1.55 per liter.

Oil companies are set to announce the final price adjustments on Monday, which will take effect the next day.