Fuel price increase seen next week

MANILA, Philippines — Pump prices of fuel products are set to increase by as much as P0.90 per liter next week, with gasoline and diesel posting two straight weeks of hikes.

The Department of Energy-Oil Industry Management Bureau (DOE-OIMB) indicated a potential per-liter increase of P0.30 to P0.60 for gasoline, P0.65 to P0.90 for diesel and P0.40 to P0.50 for kerosene.

The estimates were based on the four-day trading in the Mean of Platts Singapore.

Amid the escalating tensions in the Middle East, DOE-OIMB assistant director Rodela Romero said the uncertainties in supply are pushing oil prices up.

This came after Israel dismissed global calls for a ceasefire with militant group Hezbollah and continued its attacks on Lebanon.

Romero noted that recent developments in China’s economy and the US oil market have also exerted upward pressure on domestic pumps.

“The latest economic stimulus from China offset the weak demand growth from Europe. The US crude inventory draw is a bullish signal indicating tightening global supplies,” the official added.

Yesterday’s trading would determine the final price adjustments, which will be announced on Monday and will take effect the following day.

This week, gasoline and diesel prices increased by P1.10 and P0.20 per liter, respectively, while no adjustments were implemented for kerosene.