Fuel prices to increase once again next week

Fuel prices to increase once again next week

FUEL prices are expected to go up again on Tuesday for the second week in a row due to geopolitical events influencing price movements.

According to oil industry sources on Friday, both gasoline and diesel prices will go up from 85 centavos to P1.15 per liter, and by about P1.55 to P1.85 per liter, respectively.

Kerosene prices will follow the same trend with an estimated increase range from P1 to P1.10 per liter.

These estimates are based on the four-day trading of the Mean of Platts Singapore, the pricing basis of refined goods in Southeast Asia.

According to the Department of Energy's Oil Industry Management Bureau (DoE-OIMB), next week's price movements are mostly due to recent global conflicts, along with several oil market developments.

"Relevant news for the week that pushed oil prices up are the continued geopolitical tensions and supply risks as of last June 18, a Ukrainian drone strike caused a fire at a major Russian oil terminal while the Israel's 'all out war' with Lebanon's Hezbollah also contributed to global tension," DoE-OIMB Director Rodela Romero said.

"In addition, other factors that supported the rise in prices also include the Organization of the Petroleum Exporting Countries' optimistic outlook forecasting strong growth in global oil demand for 2024 and 2025; and also the current peak summer driving season in the Northern Hemisphere," she added.

On June 18, 2024, the local oil companies implemented an increase on all prices of petroleum products — gasoline, diesel, and kerosene — rose by P0.85 per liter, P1.75 per liter and P1.90 per liter, respectively.

On a year-to-date basis, the total adjustments of gasoline, diesel, and kerosene now stand at net increases of P6.90 per liter, P6.00 per liter and 35 centavos per liter, respectively.