After seven successive weeks of downtrends, motorists should brace for another round of increases in petroleum prices next week, with diesel again going up the most.
Based on the oil trading data from Monday to Thursday, an industry source said diesel prices are expected to go up by around P2 to P2.20 per liter, while the cost of gasoline will slightly increase by around P0.10 to P0.30 per liter.
The source said the final price adjustment forecasts are still subject to change as they did not include the oil trading data on Friday.
According to DoE oil monitoring data, the prices per liter of gasoline for the week 16 to 22 August range from P65.05 to P75.76 per liter in Quezon City, the largest city in Metro Manila.
Meanwhile, diesel prices in Makati City range from P71.90 to P78.30.
In the capital city of Manila, kerosene prices are sold between P73.44 and P85.00 per liter.
Looming price hike
In a radio interview on Friday, Department of Energy Oil Industry Management Bureau director Rodela Romero confirmed the looming oil price hikes.
“For diesel and kerosene, there might be a hefty increase, but for gasoline, it will be little to no change,” she said.
Oil companies announce price adjustments every Monday to be implemented the following morning.
They adjust their prices weekly based on the movement of the Mean of Platts Singapore — the regional pricing benchmark adopted by the deregulated downstream oil sector.
Effective last Tuesday, local oil companies cut diesel prices by P1.05 per liter, gasoline by P0.10 per liter and kerosene by P0.45 per liter.
The latest data from the DoE showed that since 1 January, the cumulative increase in diesel prices stood at P29.10 per liter, gasoline at P17.45 per liter and kerosene at P24.30 per liter as of end 16 August.
P100/liter
During the peak of oil price increases in early June, some petroleum stations in Cebu City and Puerto Princesa City, Palawan, reportedly sold fuel for over P100 per liter.
However, former Oil Industry Management Bureau director Rino Abad explained that fuel prices in provinces are around P6 to P8 higher than the Metro Manila prices due to higher transportation costs amid a lack of adequate import terminals.
Considering these factors, he argued that the reported prices in Palawan and Cebu were only fair and not overpriced.
Being a net importer of oil, importers and even the government cannot assure motorists of a continued oil price deduction because the country is directly affected by the volatility in the international market, which is currently aggravated by the tension between Russia and Ukraine.