Consumers are facing a hefty price hike of P1.30 per liter for gasoline and P0.95 per liter for diesel effective 6 a.m. today (Tuesday) to reflect the ongoing volatility in the world oil market.
Oil firms, however, will not adjust kerosene prices this week.
Seaoil Philippines and Cleanfuel issued their respective advisories of the oil price increases and other oil companies are expected to follow.
Today’s oil price hike is higher than previous forecasts of P0.70 to P0.90 per liter for diesel and P0.90 to P1.10 per liter for gasoline.
“The uptrend is due to the following factors: Geopolitical factors with higher freight cost and insurance due to longer voyage time and risk in avoiding the Red Sea,” Department of Energy director for the oil industry management bureau Rodela Romero said.
She said the rebound on China’s crude imports, the drop in the US inventory and the forecasted higher demand by the S&P Global Platts, International Energy Agency and the Organization of the Petroleum Exporting Countries also pushed prices upwards.
Romero warned that domestic pump prices would likely continue to increase if the ongoing tensions in the Middle East persist.
“There is a chance [of more price hikes] but remember there are lingering factors that can bring down prices such as slow growth of oil demand, (and the) presence of additional supply from other OPEC [Organization of the Petroleum Exporting Countries] member countries,” she said.
On Jan. 16, 2024, oil companies implemented a price increase of P0.30 per liter for gasoline and P0.90 per liter for diesel and kerosene.
DOE said the net adjustment of gasoline and diesel this year stood at a net increase of P0.30 per liter and P0.65 per liter, respectively.
Kerosene, on the other hand, logged a net decrease of P0.40 per liter.