Gasoline prices seen going up; rollback in diesel

MANILA, Philippines — Mixed adjustments on oil prices may be implemented next week, according to the Department of Energy.

DOE-Oil Industry Management Bureau (OIMB) assistant director Rodela Romero said prices will decrease by P0.60 to P0.85 per liter for diesel and P0.60 to P0.80 for kerosene, while gasoline will increase by P0.40 to P0.60.

The mixed movement on prices is attributed to the “lingering factors” of geopolitical conflict in the Middle East, Romero said.

She added that the unexpected reduction of fuel demand in “big economies” such as China and the US also impacted oil prices. 

“However, analysts say that the volatility in the energy markets is expected to continue,” Romero said. 

In an interview, DOE-OIMB director IV Rino Abad said the main reason why fuel prices are high is also because of the OPEC+ production cuts.

“Admittedly, the increasing price is brought about by the OPEC+ reduction,” Abad told reporters. “It is brought about primarily by the production cut, (and) not necessarily about the conflict.”

However, Abad said the increase is gradual, and that spikes only occur during speculation as “no one really can control speculation.”

Last Tuesday, oil companies increased pump prices again by P0.40 per liter for gasoline, P0.95 for diesel and P0.85 for kerosene, marking the second consecutive price hike of fuel products.

The final price adjustment will be announced on Monday and will take effect the next day.