DOE: Oil prices may increase by over P1 next week

Prices of petroleum products may increase by over P1 next week, the Department of Energy (DOE) said Friday.

DOE-Oil Industry Management Bureau Director Rino Abad said that based on the recent four-day trading, prices of kerosene and diesel are expected to increase by more than P1 per liter.

Gasoline prices may rise by P0.50 per liter unless "it will be affected by Friday trading.''

Meanwhile, an oil industry source said price increases may range from P1 to P1.20 per liter for diesel and from P0.10 to P0.30 per liter for gasoline.

According to Abad, the possible fresh round of price hikes may be attributed to Saudi Arabia’s commitment to reduce output targets that will take effect on July 1 in a bid to prop up prices.

DOE-Oil Industry Management Bureau Assistant Director Rodela Romero echoed Abad's statement on oil production cuts, adding that "oil prices rose, taking some support from strong US economic data and hopes of improving demand in Asia plus a possible unexpected drawdown in the US stockpile.''

On June 20, local oil companies implemented a per-liter decrease of P0.35 for gasoline, P0.10 for diesel, and P0.30 for kerosene.

These price adjustments resulted in a year-to-date net decrease for diesel at P4.05 per liter and kerosene at P6.35 per liter, and a net increase of P6.35 per liter for gasoline. —Sundy Locus/VBL, GMA Integrated News