Fuel price hike of P0.90 per liter looms

MANILA, Philippines — After a two-week downtrend, pump prices of petroleum products are expected to increase by as much as P0.90 per liter next week.

Based on the four-day trading, the Department of Energy-Oil Industry Management Bureau (DOE-OIMB) estimated an upward adjustment of P0.40 to P0.90 per liter for gasoline.

Diesel and kerosene, on the other hand, are likely to hold steady with possible increases of P0.40 and P0.20 per liter, respectively.

DOE-OIMB assistant director Rodela Romero said the estimated adjustments are attributed to the aggressive interest rate cuts in the US, weeks before the highly anticipated presidential polls.

The US Federal Reserve slashed the key overnight borrowing rate by 50 basis points last Wednesday in an attempt to stave off a slowdown in the labor market.

Romero noted that among other factors for the looming price hikes are the decline in US crude inventories and geopolitical tensions in the Middle East.

“For Asia, Japan’s refinery is under maintenance and Malaysia removed its subsidies to gasoline with an octane grade of 95,” the official added.

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

This week, pump prices of gasoline, diesel and kerosene declined by P1, P1.30 and P1.65 per liter, respectively.