Hefty oil price hike seen next week

An oil industry source said indicative movement on pump prices for next week based on the first four trading days showed a potential increase of P2.80 to P3 per liter for diesel and a possible P1.60 to P1.80 per liter for gasoline.
STAR/File

MANILA, Philippines — Hefty increases in pump prices await motorists next week, with diesel and kerosene prices expected to rise for a fourth consecutive week and gasoline for a third straight week.

An oil industry source said indicative movement on pump prices for next week based on the first four trading days showed a potential increase of P2.80 to P3 per liter for diesel and a possible P1.60 to P1.80 per liter for gasoline.

Cleanfuel, on its part, said running trend showed a potential upward adjustments of P1.50 per liter in gasoline and P2.60 per liter in diesel.

“Unfortunately, there is a high chance of an increase next week for all products,” Department of Energy (DOE)-Oil Industry Management Bureau director Rino Abad said in an interview with dzBB yesterday.

Abad has estimated a more than P1 per liter increase in the price of gasoline and over P2 for both diesel and kerosene.

Abad said the effect of the US and European Central Bank interest rate hikes, which are expected to neutralize the impact of the oil output cuts of Saudi Arabia, did not make it in time for this week’s trading.

“Unfortunately, the Monday to Thursday trend of trading price was upward. But we expect to see the effect of the interest hike of US and Europe next week,” he said.

The final domestic pump price movements will be announced by oil companies on Monday, which will take effect the next day.

Should the forecasted upward adjustments push through, it would mark a fourth consecutive week of price hikes for diesel and kerosene, and third straight for gasoline.

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