Motorists should prepare for the fourth consecutive week of oil price hikes, with gasoline expected to see the most significant increase, potentially as high as P1.50 per liter. This forecast comes from Rodela Romero, the assistant director of the Department of Energy-Oil Industry Management Bureau.
Romero estimates that gasoline prices will rise between P1.25 and P1.50 per liter. Diesel prices are expected to increase by P0.40 to P0.60 per liter, while kerosene prices may go up by P0.60 to P0.80 per liter. These predictions are based on the first four days of trading in the Mean of Platts Singapore, a benchmark for oil pricing in the Asia-Pacific region.
Several factors are driving these price increases. Romero points to ongoing geopolitical tensions in the Middle East and larger-than-expected withdrawals from US crude oil inventories as primary reasons. These elements have created upward pressure on global oil prices, which in turn affects domestic pump prices.
Additionally, the anticipated rise in fuel demand during the summer months is contributing to the higher prices. As more people travel and consume fuel for various activities, the demand pushes prices up.
The official price adjustments will be announced on Monday, with the new prices taking effect the following day. Last Tuesday, oil companies already implemented price hikes of P0.95 per liter for gasoline, P0.65 per liter for diesel, and P0.35 per liter for kerosene.
Since the beginning of the year, the cumulative increase in fuel prices has been substantial. Gasoline prices have risen by P9.25 per liter, diesel by P8.40 per liter, and kerosene by P1.75 per liter. These consecutive increases are placing additional financial burdens on motorists, who must now budget for higher fuel costs amidst other living expenses.
The persistent rise in fuel prices is a matter of concern for many, as it impacts transportation costs and can lead to broader economic effects, such as increased prices for goods and services. For now, motorists are advised to brace for the upcoming hikes and plan accordingly to manage the impact on their daily expenses.