Oil prices are expected to rise this week, with the cost of gasoline going up by as much as P1.10 per liter to reflect changes in the world market.
“Expect fuel prices to go up next week (June 16 – June 22). Diesel should increase by P1 per liter. Gasoline should increase by P1 to P1.10 per liter,” Unioil Philippines said in its weekly price forecast.
On June 9, the oil companies raised the price of gasoline by P1.75 per liter, diesel by P1.10 per liter and kerosene by P1 per liter.
The total year-to-date adjustments reflect a net decrease of P7.97 per liter for gasoline, P11.09 per liter for diesel, and P14.44 per liter for kerosene.
World oil prices have been going up in recent weeks after the Organization of the Petroleum Exporting Countries (OPEC) and its allies agreed to cut production starting July amid a slowdown in demand due to the coronavirus pandemic.
According to reports gathered by the Energy Department, OPEC and its oil-producing allies agreed on June 6 to extend its production cut of 9.6 million barrels per day until the end of July to stem the downward spiral of oil prices.
Anticipation of continuing production cuts has been sending oil prices higher but uncertainty remains for the second half of the year.
Meanwhile, as countries ease their lockdowns resulting in a recovery in demand, refineries in Asia are gradually raising their operating levels, although margins are still far from pre-COVID-19 levels.