MOTORISTS should brace for an increase in pump prices of petroleum products next week, according to the Department of Energy (DOE) on Friday.
Based on four-day international trading, DOE Oil Industry Management Bureau Director Rodela Romero said the following adjustments could be implemented: gasoline with a slight increase of around P0.10 per liter, diesel with a more significant increase of around P0.85 per liter, and kerosene with an increase of around P0.45 per liter.
Romero attributed the expected price hikes to several factors influencing the international oil market. These include weather-driven supply disruptions in the United States, which shut in as much as 2 million barrels per day of output, the slow recovery of Kazakhstan’s Tengiz field after a fire and power issue, the rising Iran risk premium, and the OPEC+ policy to pause its output hikes.
It’s important to note that these estimates exclude the oil companies’ operating costs and other premiums, meaning the final price adjustments could vary slightly. Oil companies typically announce official price adjustments every Monday, with implementation taking effect the following day.
metrosundaily
