Fuel prices to surge Tuesday; 3rd weekly hike this year

Fuel prices continue to rise. —Inquirer file photo

MANILA, Philippines — Fuel pump prices are expected to soar next week by as much as P2.80 per liter, the third straight weekly increase this year, according to industry sources.

Rodela Romero, assistant director of the Department of Energy-Oil Industry Management Bureau, said diesel prices could increase by P2.30 to P2.60 per liter.

Kerosene may also record price hikes ranging from P2.30 to P2.50 a liter.

Gasoline, meanwhile, may go up by P1.35 to P1.60 per liter.

Fuel companies started the year by increasing the prices of gasoline and kerosene by P1.00 per liter each, and diesel by P1.40 on Jan. 7.

The following week, oil companies increased the prices of gasoline and kerosene by P0.80 per liter each, and diesel by P0.90 on Jan. 14.

READ: Fresh round of fuel hikes set on Tuesday, January 14

Thus, gasoline and kerosene prices have increased by P1.80 per liter while diesel rose by P2.30 per liter since the year began.

But Jetti Philippines, in a separate forecast, said fuel prices could increase even more when the price hikes take effect on Jan. 21.

Even higher increase

Jetti Philippines said diesel prices could jump by P2.60 to P2.80 a liter, while gasoline may increase by P1.50 to P1.70 per liter.

Jetti said the potential “sharp” increase in oil prices could be attributed to “the latest round of US sanctions against Russia [that] could disrupt supply and distribution chains, potentially affecting Russian crude exports to top buyers China and India.”

Romero agreed that this move could result in “a reduction of Russian exports.”

“Thereby, [it] could push global crude prices higher in the near term, as the market adjusts to the loss of supply from one of the world’s largest oil producers. Likewise, there would be potential increases in shipping cost,” Romero said.