Fuel price hike or 'no change' seen next week

After two straight weeks of rollbacks, motorists should expect an increase or "no change" in fuel pump prices in the coming week based on oil industry estimates.

The estimated fuel price adjustments are as follows:

Gasoline - increase of P0.40 to P0.90 per liter

Diesel - no adjustment to increase of P0.40 per liter

Kerosene - no adjustment to increase of P0.20 per liter

Department of Energy-Oil Industry Management Bureau Assistant Director Rodela Romero said that “mixed movements will be implemented in the domestic pump prices by next week.”

According to Romero, the reasons for anticipated fuel price adjustments are based on the following developments:

• US Fed Reserve makes aggressive interest rate cut weeks before their Presidential election
• Tension in the Middle East that attack on Hezbollah members across Lebanon offered some price support due to potential supply disruption
• Decline in US crude inventories
• For Asia, Japan refinery under maintenance and Malaysia removes their subsidies to gasoline with octane grade of 95

Oil companies announce official price adjustments every Monday, which will take effect on the following day.

Effective Tuesday, September 17, fuel firms slashed the per liter prices of gasoline by P1.00, diesel by P1.30, and kerosene by P1.65.

The latest price movements brought the year-to-date total adjustment of gasoline and diesel to stand at a net increase of P4.85 per liter and P1.75 per liter, respectively, while kerosene has a total net decrease of P6.35 per liter.

In Metro Manila, the prevailing retail prices of gasoline range from P51.00 to P72.45 per liter, diesel ranges from P46.74 to P61.50 per liter, and kerosene from P68.27 to P78.79 per liter, according to the latest data from the DOE’s price monitoring.

—VAL, GMA Integrated News