Fuel prices seen to go up next week

Motorists should brace for another round of increase in the pump prices of petroleum products next week, local oil industry sources said Friday.

Department of Energy-Oil Industry Management Bureau Assistant Director Rodela Romero told GMA News Online that “there will be an increase in the prices of gasoline and diesel” based on the four-day Mean of Platts Singapore (MOPS) trading of fuel products.

“Kerosene has a minimal rollback but the real direction whether rollback or increase would depend on Friday's trading,” Romero said.

Likewise, an oil industry source, citing MOPS trading from May 15 to 18, said the there is an expected P0.10 to P0.40 per liter hike on both diesel and gasoline.

The source said kerosene may have no price movement or a P0.10 per liter increase, depending on Friday’s oil trading.

Romero said the following developments contributed to the anticipated increase in fuel products:

• Leaders of the Group of Seven (G7) nations plan to tighten sanctions on Russia at their summit in Japan this week

• US plans to purchase oil for its strategic petroleum reserve and the raging wildfires in Canada that fuelled supply worries

• US starts refilling the SPR (Strategic Petroleum Reserve) and the IEA’s more upbeat demand forecast

• In the May Oil Market Report, the International Energy Agency (IEA) raised its forecast for world oil demand growth in 2023 to 2.2 million barrels per day, with China’s rebound even stronger than previously expected

Oil companies usually announce price adjustments every Monday, to be implemented the following day. —VAL, GMA Integrated News