Big-time fuel price hike seen on last week of 2023

Fuel prices are expected to go up big-time on the last week of 2023 amid the "surge" in the international market, the Department of Energy (DOE) said Friday.

Citing industry estimates during this week's trading, DOE-Oil Industry Management Bureau (DOE-OIMB) Assistant Director Rodela Romero said the estimated price hikes are as follows:

• Gasoline - P1.40 to P1.60 per liter
• Diesel - P1.40 to P1.60 per liter
• Kerosene - P1.60 to P1.80 per liter

"Said adjustments were tempered by signs of unexpected build up in US crude stockpiles and talks over a potential ceasefire in the Israel-Hamas war," Romero said.

The DOE official also noted a growing avoidance of the Red Sea by oil companies and tanker owners amid the ramped up attacks on vessels by rebels in the area, resulting in surge in oil prices.

The United States on Tuesday launched a multinational operation to safeguard commerce in the Red Sea as attacks by Iran-backed Yemeni militants forced more major freight companies to reroute, fueling concern over a sustained global economic impact.

The Houthi militant group, which controls vast amounts of territory in Yemen, has since last month fired drones and missiles at international vessels sailing through the Red Sea, in attacks it says are a response to Israel's assault on the Gaza Strip.

Oil firms this week increased pump prices for diesel after two consecutive weeks of downward adjustments, and rolled back kerosene prices for the second straight week.

There was no movement in gasoline prices this week. —with Reuters/KBK, GMA Integrated News