Hefty fuel price hike seen

After weeks of rollbacks, prices of petroleum products are expected to increase by more than P6.

Industry sources said diesel prices commonly used by motorists will increase by P6 to P6.20 per liter, while gasoline is seen to surge by P1.20 to P1.40 per liter.

Also, kerosene prices are expected to increase by P3.50 to P3.70 per liter.

This contradicts the forecast of the Department of Energy director Rino Abad during the Laging Handa Public Forum last Friday, in which he predicted increases of P1 for gasoline, P4 for diesel, and more than P2 for kerosene.

Abad said the price adjustment was due to the Organization of Petroleum Exporting Countries and its allies’ announcement to slash oil production by 2 million barrels per day, its biggest cut since the start of the Covid-19 pandemic.

Petroleum products dropped for five straight weeks as the global economy reeled from the effects of the recession.

Diesel prices were cut by as much as P8.85 per liter, while gasoline prices and kerosene prices had net decreases of P5.10 and P9.95 respectively.

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