Diesel seen increasing by as much as P3.60/liter

MANILA, Philippines — Pump prices are expected to continue soaring next week, with diesel and kerosene poised for another round of hefty increases.

An oil industry source said indicative movement on pump prices for next week based on the first four trading days showed potential upward adjustments of P3.50 to P3.60 per liter for diesel and P0.20 to P0.30 per liter for gasoline.

Cleanfuel, on its part, said running trend showed possible increases of P3.10 per liter for diesel and P0.10 per liter for gasoline.

“Estimates based on four trading days show that there is a high chance that there will be another increase in all products,” Department of Energy (DOE)-Oil Industry Management Bureau director Rino Abad said in an interview with dzBB yesterday.

Abad said the price of diesel could rise by more than P3 per liter, while that of kerosene could jump by over P2 per liter.

“For gasoline, there is an inclination towards an increase, but it is just small. Less than P0.50 per liter,” he said.

With oil prices rising this week, Abad said it appears that concerns on the supply side due to the oil output cuts of Saudi Arabia have prevailed over the impact from the interest rate hikes recently announced by the US and European Central Bank.

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

Should the forecast upward adjustments push through, it would extend the price increases for diesel and kerosene to a fifth straight week and fourth consecutive for gasoline.