Fuel Price Surge Looms: Motorists to Face Higher Gasoline and Diesel Costs

Motorists are on the cusp of encountering a fresh wave of fuel price hikes in the coming week, as per the recent projections shared by the Department of Energy’s Oil Industry Management Bureau. Assistant Director Rodela Romero provided insights into the expected price adjustments, indicating a potential increase in the pump prices of both gasoline and diesel.

Based on oil industry estimations derived from the past four days of trading, consumers can anticipate a rise in gasoline prices ranging from P0.65 to P0.85 per liter. Diesel is also set to follow suit, with a projected increase of P0.45 to P0.65 per liter. In contrast, the kerosene market may witness a steadier trend, with Romero suggesting the possibility of either no adjustment or a slight rollback of P0.10 per liter.

These impending price adjustments are closely tied to the escalating geopolitical tensions in the Middle East, notably including the recent attacks on ships navigating the Red Sea and the Iranian missile offensives targeting areas in Syria and Iraq. Such regional unrest has contributed significantly to the geopolitical risk premium, inevitably impacting global oil prices. Furthermore, the Organization of Petroleum Exporting Countries (OPEC) has projected a robust surge in global oil demand over the next two years, further influencing the market dynamics.

Fuel companies typically announce their price adjustments on Mondays, with the new rates taking effect the following day. The last adjustment witnessed a hike in gasoline prices by P0.30 per liter and an increase of P0.90 per liter for both diesel and kerosene. The cumulative impact of these recent changes has led to a net adjustment of P0.30 per liter for gasoline and P0.65 per liter for diesel, while kerosene prices experienced a net decrease of P0.40 per liter.

As of the latest data from the DOE’s price monitoring for the period of January 16 to 22, the prevailing retail prices in Metro Manila stand between P52.30 to P76.55 per liter for gasoline, P51.00 to P67.50 per liter for diesel, and P71.64 to P83.03 per liter for kerosene.

As the global oil market continues to navigate through geopolitical uncertainties and demand fluctuations, motorists and industries alike brace for the ripple effects of these price alterations on their daily operations and overall economic activities.