Another fuel price hike seen amid fears of global recession | Inquirer News

Another fuel price hike seen amid fears of global recession

Tricycle at gas station. STORY: Another fuel price hike seen amid fears of global recession

(File photo by NIÑO JESUS ORBETA / Philippine Daily Inquirer)

MANILA, Philippines — Oil companies are expected to jack up domestic fuel prices for the second straight week, but less than the increases it slapped last week, according to industry sources.

Unioil said in an advisory that the price of diesel may go up by P2.60 to P2.80 per liter and gasoline by 80 to 90 centavos per liter.

ADVERTISEMENT

Another source made a similar projection, seeing diesel prices increase by P2.40 to P2.70 per liter while that of gasoline by 50 to 80 centavos per liter, based on the average Mean of Platts Singapore (MOPS) trading from Oct. 10 to Oct. 14.

Cumulative hikes

MOPS is the daily average price of refined petroleum products in Singapore trading. It is used for pricing petroleum products in Southeast Asia, including the Philippines.

FEATURED STORIES

Cumulative increases as of writing stand at P15.65 per liter for gasoline, P35.80 per liter for diesel and P26.75 per liter for kerosene.

Gas stations in Metro Manila sell gasoline from P60 to P79.52 per liter and diesel from P69.60 to P87.65 per liter. Kerosene retails from P77.20 to P87.35 per liter.

In the West, oil prices plummeted more than 3 percent on Friday amid fears of a global recession and weak oil demand, especially in China, Reuters reported on Friday.

Brent crude futures dropped to $91.63 a barrel, while US West Texas Intermediate crude futures fell to $85.61.

European and US contracts oscillated between positive and negative territory for much of Friday but fell for the week by 6.4 percent and 7.6 percent, respectively.

Inflation all over

The drop was due to the announcement that US core inflation recorded its biggest annual increase in 40 years, reinforcing views that interest rates would stay higher for longer with the risk of a global recession.

The next US interest rate decision is due on Nov. 1 to Nov. 2.

ADVERTISEMENT

Fears of a global recession was more acute in Europe, particularly Germany, after Economy Minister Robert Habeck reported that Europe’s largest economy would likely head into recession in 2023 because of the Russia-Ukraine War.

Habeck told reporters Germany would shrink 0.4 percent next year rather than grow by 2.5 percent as initially expected. Growth forecasts for 2022 have also been adjusted downward to 1.4 percent, from a previous forecast of 2.2 percent.

“The numbers are bad,” said Habeck, arguing that the data could have been worse had the government not taken “the steps we have taken.”

The world’s second-largest economy, China, has also slowed down in the first half of the year and if official growth figures for July to September show a contraction, economists predict increased chances of a global recession.

—WITH A REPORT FROM REUTERS

RELATED STORIES

Fuel excise tax scrapping discussed, but other options being considered – Palace

Fuel excise suspension pushed

OPEC output cut spurs big-time fuel price hike next week

News handpicked by our editors

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

Read Next
Don't miss out on the latest news and information.

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: fuel prices, global recession, oil firms
For feedback, complaints, or inquiries, contact us.

News that matters

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.



© Copyright 1997-2023 INQUIRER.net | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.