P2 per liter pump price hike looms

MANILA, Philippines — Major fuel price hikes are expected next week amid concerns that tougher sanctions on the Russian oil industry could tighten supply in the global oil market.

The Department of Energy indicated an upward adjustment of P1.35 to P1.60 per liter for gasoline, P2.30 to P2.60 per liter for diesel and P2.30 to P2.50 per liter for kerosene.

The estimates were based on the four-day trading in the international market.

Oil Industry Management Bureau assistant director Rodela Romero attributed the expected hikes to a new round of sanctions imposed by the US and the UK on Russian oil companies.

These sanctions, which reportedly target traders and hundreds of oil tankers, are designed to reduce Russia’s energy revenue and deplete its war chest amid the ongoing conflict with Ukraine.

“This will result in a reduction of Russian exports, thereby (pushing) global crude prices higher in the near term, as the market adjusts to the loss of supply from one of the world’s largest oil producers,” Romero said.

Similarly, the official added that there could be a potential increase in shipping costs as well.

Yesterday’s trading would determine the final price adjustments, which will be announced on Monday and will take effect the following day.

Last Tuesday, oil companies implemented an increase of P0.80 per liter for gasoline and kerosene and P0.90 per liter for diesel.