Over P2/liter hike in fuel prices seen next week

Motorists should tighten their belts once more as fuel pump prices are expected to go up big-time next week.

International petroleum trading in the past four days indicate an over P2 per liter hike to be implemented on Tuesday, October 15, 2024, according to an oil industry source.

The estimated upward pump price adjustments are as follows:

• Diesel - P2.50 to P2.70 per liter
• Gasoline - P2.30 to P2.50 per liter

Department of Energy-Oil Industry Management Bureau Assistant Director Rodela, likewise said that “there will be an increase in the prices of petroleum products next week.”

For gasoline the expected hike would be P2.00 to P2.30; while for diesel and kerosene, the increments would be P2.35 to P2.65 per liter and P2.45 to P2.55 per liter, respectively, according to Romero.

The expected fuel price hike was attributed to “significant spike in crude oil prices due to fear of supply disruption should Israel’s retaliation target Iran’s oil infrastructure,” the source said.

“There is also some tightening in supplies of diesel and gasoline in our region due to production cuts (ongoing refinery maintenance and refinery run cuts) and unplanned refinery outages in Indonesia and Malaysia. Overall, the increase is due to higher crude prices, which may stay elevated because of the Middle East tension,” the source added.

Romero also cited the escalating conflict in the Middle East which threatens to disrupt oil exports “with an increasing war premium” and “Hurricane Milton, disrupting energy links.”

The Energy official said final adjustments will be determined after Friday’s trading.

Fuel firms announce official price adjustments every Monday, to be implemented on the following day.

Effective Tuesday, October 8, oil companies hiked the prices of diesel and kerosene by P1.20 per liter and P0.70 per liter, respectively, while no change was effected for gasoline.

The latest price movements resulted in year-to-date adjustment for diesel to stand at a net increase of P4.05 per liter, while gasoline remains at P6.40 per liter.

Kerosene, meanwhile, has a year-to-date net decrease of P5.35 per liter.

In Metro Manila, the prevailing retail prices of gasoline range from P50.30 to P71.03 per liter, diesel ranges from P5.40 to P59.80 per liter, and kerosene from P66.59 to P77.65 per liter, according to data from the Department of Energy’s latest price monitoring. —KBK/RSJ, GMA Integrated News