Fuel companies ready 5th price hike for diesel on Jan. 27
Local fuel retailers are expected to again increase prices for petroleum products this week, only days after posting their biggest increase in January.
And the hike is expected to be even bigger for diesel starting Jan. 30 after oil firms forecast an increase of P1.20 to P1.40 per liter, with gasoline prices also rising by 30 centavos to 50 centavos a liter.
The price hike, if implemented, will follow the fuel price hike posted on Jan. 20, when retailers hiked gasoline by P1.00 per liter, Diesel by P2.00 and kerosene by P1.50.
Fuel companies again blamed external factors for the hike, tagging supply risks, stronger demand and continued geopolitical tensions.
Forecast increase
Jetti Petroleum president Leo Bellas said that based on their forecast, diesel prices might increase by P1.20 to P1.40 per liter starting Jan. 27.
If implemented, next week’s price hikes would mark diesel’s fifth consecutive week of increases and the third for gasoline.
“Worries of tightening near-term supply due to the temporary halting of production at two large oil fields in Kazakhstan and export constraints in the Black Sea are supporting the upward pressure on oil prices this week,” Bellas said. He was referring to the first four days of trading this week.
Optimism about the economic expansion of China, a known economic powerhouse, is also pushing demand higher, he added.
A “sharp rise” in demand was also seen in the United States and Europe due to the colder weather.
“Geopolitical tensions continue to have a significant impact on the prices of diesel and middle distillates,” Bellas said.
For this week, the per-liter price of diesel and gasoline went up by P2 and P1, respectively.
Since the start of the year, the prices of gasoline and diesel already increased by P1.20 and P2.40 per liter, respectively.
