P2 fuel price increase expected next week

Inquirer file photo/Niño Jesus Orbeta

MANILA, Philippines — Industry players hinted at a price hike of up to almost P2-a-liter next week as various global developments including the projected increase in global demand make pump prices volatile.

In an advisory over the weekend, Unioil said diesel might increase by P1.60 per liter to P1.80 per liter and gasoline by 70 centavos to 90 centavos per liter.

The Department of Energy (DOE) provided a similar estimate, saying the gasoline might increase by 60 centavos to 85 centavos per liter.

READ: Oil firms cut prices by 60 centavos to P1.30 per liter

‘Uncertainties’

The estimated price hike on diesel ranged between P1.45 per liter and P1.70 per liter while kerosene is seen to rise by P1.85 per liter to P1.90 per liter.

“Among the relevant news that contributed to the trajectory increase of oil prices are the upbeat global demand forecasts from Energy Information Administration and Organization of Petroleum Exporting Countries coupled with data showing a sharper than expected drop in US crude inventories,” said Rodela Romero, director of the DOE’s Oil Industry Management Bureau.

She stressed the “uncertainties of the timing of the Federal Reserves on the interest-rate cut and the reduced Saudi exports to China and potential US reserve purchases.”

Last week, local oil firms reduced the price of gasoline by 60 centavos per liter and diesel by P1.20 per liter. Kerosene also decreased by P1.30 per liter.

Based on the DOE’s price monitoring, gasoline is priced from P53.90 per liter to P84.52 per liter in Metro Manila as of June 11 to 17.

Diesel prices range from P50.94 per liter to P78.20 per liter while kerosene is sold from P71.09 per liter to P81.09 per liter in the metro.