Fuel price hike to greet motorists on 1st week of September

After a round of big-time reductions, the retail prices of petroleum products are expected to go up next week.

Citing industry estimates based on international oil trading in the past four days, Department of Energy-Oil Industry Management Bureau Assistant Director Rodela Romero said domestic pump prices are expected to increase.

The estimated adjustments are as follows:

• Gasoline - P0.20 to P0.45 per liter
• Diesel - no adjustment to increase of P0.20 per liter
• Kerosene - P0.45 to P0.55 per liter

Romero said results of Friday’s trading will determine the final adjustments to be implemented on September 3, 2024.

The anticipated per liter hikes in fuel prices could be attributed to “combination of escalating geopolitical tensions and a sudden halt in Libyan oil production/exports [that] sent shockwaves through global markets,” according to Romero.

“Market looking the turn of US Federal Reserve into its rate cut cycle from September which has lifted the outlook for global economic activity and crude demands. But the economic worries in the US and China overshadow supply risks that make prices bearish yesterday, Thursday,” she added.

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

Effective Tuesday, August 27, fuel firms slashed the pump prices of gasoline by P1.15 per liter, diesel by P1.90 per liter, and kerosene by P1.85 per liter. 

The latest pump price movements brought the year-to-date total adjustments to stand at a net increase of P6.90 per liter for gasoline and P4.05 per liter for diesel. 

Kerosene, meanwhile, posted a year-to-date net decrease of P4.00 per liter. —KBK, GMA Integrated News