Consumers may have to brace for higher oil prices starting Tuesday this week as pump prices could go up by as much as P1 per liter.
“Expect fuel prices to go up next week. Diesel should go up by P0.65 to P0.75 and gasoline should go up by P1.00 to P1.10,” Unioil Philippines said in its weekly price forecast.
Last July 9, most of the oil companies increased the price of gasoline by P0.25 but cut the price of diesel and kerosene by P0.40 and P0.35, respectively. Oil companies adjust pump prices on a weekly basis while prices vary depending on the brand, location and market forces.
Year-to-date adjustments stand at a net increase of P5.15 per liter for gasoline, P3.30 per liter for diesel and P1.75 per liter for kerosene, according to the Energy Department.
World oil prices fell in Asia during the trading week of July 1 to 5, weighted down by Energy Information Agency data report showing smaller-than-expected draw on US crude inventory stockpiles.
DOE said weak demand from the US could be a sign of the slowing economy.
Other developments also impacted on pump prices early this month such as the decision of the Organization of Petroleum Exporting Countries and its allies to extend production cut by nine months.
Fears of slowing oil demand growth resulting from uncertainties surrounding the China-US Trade development also had an impact on oil prices last week.
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