P4 fuel price hike seen
FILE PHOTO
MANILA, Philippines — Motorists may want to fill up their tanks before casting their votes on Monday as domestic pump prices are projected to increase by more than P4 per liter next week.
According to an industry source, the price of diesel may climb by P3.70 to P4 per liter and gasoline by P4 to P4.40 per liter based on the May 2 to May 6 average of Mean of Platts Singapore, the regional pricing benchmark for refined oil products. It is used by the country’s oil industry for pricing finished petroleum products.
Unioil’s fuel price forecasts are close to estimates provided by the source. It said the cost of diesel is seen to rise by P3.90 to P4 per liter and gasoline by P4 to P4.20 per liter.
Rino Abad, director of the Department of Energy’s Oil Industry Management Bureau, said various global events had triggered volatility in global crude prices, including the European Union’s proposal to ban oil imports from Russia.
Another is the United States’ plan to repurchase 60 million barrels of oil to replenish its strategic petroleum reserve, about one-third of the 180 million barrels released by the US government earlier to mitigate the spike in fuel prices.
He also mentioned the US Senate committee’s approval of the antitrust bill that, if signed into law, will pave the way for a lawsuit against the Organization of the Petroleum Exporting Countries (Opec) and partners for collusion that led to spikes in crude prices.
“If passed … it [the antirust bill] is expected to create an economic war,” said Abad in a phone interview, adding the Opec will find a way around to avert this proposed measure, which he described as akin to a sanction.
Earlier, Pilipinas Shell Petroleum Corp. assured its customers of supply stability since the listed company is not sourcing any of its products from Russia.
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