THE Department of Energy (DOE) has confirmed an impending big time oil price hike of up to P1.90 per liter to reflect the movement of prices in the world oil market
The DOE said gasoline may go up by P1.10 to P1.40 per liter, diesel by P1.70 to P1.90 per liter, and kerosene by P1.10 to P1.20 per liter.
DOE Oil Industry Management Bureau (OIMB) director Rodela Romero said oil prices edged up for the past four days of trading in the Mean of Platts Singapore ( MOPS), the pricing benchmark of oil importers due to a confluence of factors.
She said this includes the impact of the storm that is expected to cut US output in the Gulf of Mexico and the Organization of the Petroleum Exporting Countries and its allies’ delayed plans to increase production in December.
Romero said another factors is the US Federal Reserve’s plan to deliver another interest rate cut.
“Other contributing factors in the estimated increase for oil prices by next week are the depreciation of the peso, the premium added to the purchase of the petroleum products, and the freight cost,” she said.
Romero said areas under the state of calamity must adhere to the price freeze for LPG and kerosene for 15 days upon its declaration.
Jetti Petroleum president Leo Bellas earlier predicted an increase of P1.85 to P2.05 per liter for diesel and P1.30 to P1.50 per liter for gasoline.
Bellas said that the strong US dollar, due to US politics, also influenced prices.
“The Trump presidency could have an impact on oil prices (although it may go down if more tariffs are imposed on China because Chinese demand could go down; prices could go up if stricter sanctions are imposed on Iran and Venezuela that will lead to tighter supply,” Bellas said.
Last Oct. 29, the oil companies implemented an increase of P0.20 per liter for gasoline and P0.50 per liter for both diesel and kerosene.
Year-to-date total adjustment of gasoline and diesel stands at a net increase of P8.75 per liter and P6.55 per liter, respectively.
On the other hand, kerosene has a total net decrease of P3.10 per liter.
