P1 gas price increase expected next week
Oil companies are poised to increase local pump prices by about a peso next week due to rising tensions in the Middle East, according to industry sources.
Over the weekend, Jetti Petroleum estimated that the price of diesel will go up by 40 to 60 centavos per liter and gasoline by P1 to P1.20 per liter.
Unioil said in a separate advisory that higher fuel prices loom in the coming week, with diesel projected to rise by 20 to 40 centavos per liter and gasoline by 80 centavos to P1 per liter.
Diesel cost hike seen, too
Meanwhile, the Department of Energy (DOE) said it expects oil companies to jack up gasoline by 60 centavos to P1 per liter and diesel by 10 to 50 centavos per liter. Meanwhile, a minimal increase in kerosene prices per liter is seen, ranging between 10 and 30 centavos.
“Relevant news that contributed to the said estimated adjustments are rising tensions in the Middle East wherein [the United States] launched military strikes on Houthis,” said Rodela Romero, DOE Oil Industry Management Bureau assistant director.
Romero said other news that could cause upward price adjustments include China’s plan to boost domestic consumption and the US government data showing a draw in fuel inventories.
Same reasons
“The strong dollar, US [Federal Reserve’s] decision to hold interest rates steady, the renewed prospects of a Russia-Ukraine ceasefire, and recession fears due to the tariff wars have been holding oil prices back,” Jetti Petroleum president Leo Bellas said.
Last week, oil companies left gasoline prices unchanged but lowered diesel and kerosene prices by 20 centavos per liter and 40 centavos per liter, respectively.
According to the DOE’s price monitoring, gasoline and diesel have year-to-date net increases of P2.15 per liter and P2.85 per liter, respectively, while kerosene has seen a total net decrease of 70 centavos per liter.
Oil companies usually announce any pump price movement on the weekend before it is implemented, usually a Tuesday.
