Fuel prices seen to go up big-time next week

Motorists shall brace again for another round of hike in the pump prices of petroleum products next week, which could mark the 10th straight week of upward adjustments for gasoline and 11th for both diesel and kerosene.

Citing the four-day Mean of Platts Singapore (MOPS) trading from September 11 to 14, Department of Energy-Oil Industry Management Bureau Assistant Director Rodela Romero said the following are the expected increments on the prices of fuel next week:

• Gasoline - P1.15 to P1.35 per liter
• Diesel -  P1.80 to P2.00 per liter
• Kerosene - P1.70 to P1.90 per liter

Diesel prices may increase by P2.20 to P2.40 per liter, while gasoline prices may go up by P1.60 to P1.80 per liter, according to estimates from an oil company, a report on GMA Integrated News Bulletin said Saturday.

An oil industry source also told GMA News Online that diesel prices may go up by P1.90 to P2.20 per liter, while gasoline prices may increase by P1.30 to P1.60 per liter.

MOPS is the basis for pricing of refined petroleum products in Southeast Asia.

The local oil industry uses MOPS, the daily average of all trading transactions between buyers and sellers of petroleum products as assessed and summarized by Standard and Poor’s Platts.

Romero said the projected price adjustments “are attributed to the tighter supply outlook due to Saudi and Russia's voluntary production cuts, Libya's supply disruption due to the hurricane, and further US crude inventory withdrawals.”

Oil companies usually announce price adjustments every Monday, to be implemented on the following day.

On Tuesday, September 12, fuel firms hiked the prices per liter of gasoline by P0.20, diesel by P0.40 per liter, and kerosene by P0.20 per liter.

The adjustments marked the ninth straight week of hikes for gasoline and tenth for both diesel and kerosene.

The latest price movements resulted in a year-to-date net increase of P15.50 per liter for gasoline, P11.10 per liter diesel, and P7.94 per liter for kerosene.

For the period September 12 to 18, the prevailing retail prices in Metro Manila of gasoline range from P61 to P81.75 per liter, diesel between P60 and P71.54 per liter, and kerosene from P78.75 to P91.09 per liter. 

According to the DOE, price increases for petroleum products may continue until December of this year. —with Jiselle Casucian/AOL/VBL, GMA Integrated News