Fuel prices are expected to rise this week, with gasoline going up by as much as P1.10 a liter to reflect the movement of prices in the world market.
An advisory issued by Unioil Petroleum Philippines Inc. over the weekend said fuel prices would go up during the week of June 29-July 5, 2021.
"Diesel will increase by P0.70 to P0.80 per liter. Gasoline will increase by P1.00 to P1.10 per liter," Unioil said in its weekly advisory.
This will be the fifth consecutive week of oil price increases.
On June 22, the oil companies raised gasoline prices by P0.75 per liter and hiked diesel and kerosene by P0.70 per liter.
These resulted in a net increase of P10.75 per liter for gasoline, P9.25 per liter for diesel and P7.70 per liter for kerosene since the start of the year.
Oil prices have been going up for the past weeks on the strength of a rapidly recovering global economy and continued output restraint among US shale producers, according to the Department of Energy.
The agency's oil monitoring showed that global oil demand is expected to continue to grow.
DOE cited the recent forecast by Platts that global oil demand is expected to grow by 5.6 million barrels per day (MMBD) in 2021, a moderate increase from 5.5 MMBD projection last month.
From June to August, global oil demand is still expected to grow by 6.9 MMBD due to seasonal uplifts along with normalization from recent lows in demand.
Despite the downward projection for India due to lockdown measures, the DOE said the upgraded outlook for Europe, resilience in the US, China and the Middle East continue to provide support for oil prices.
Meanwhile, the global oil supply is expected to grow by 3 MMBD in 2021, about 0.2 MMBD lower than earlier projections.