Fuel Price Dynamics: Upcoming Changes in Diesel, Kerosene, and Gasoline Costs

Motorists in the Philippines should brace for varying price movements in the coming week, as diesel and kerosene prices are anticipated to rise, while gasoline prices might either see a slight rollback or remain unchanged. This forecast, based on the four-day trading activities at the Mean of Platts Singapore (MOPS), was shared by the Department of Energy-Oil Industry Management Bureau Assistant Director Rodela Romero.

MOPS, a daily average of all trading transactions between buyers and sellers of petroleum products as assessed by Standard and Poor’s Platts, is the benchmark for pricing refined petroleum products in Southeast Asia. Romero indicated that, from January 8 to 11, 2024, diesel prices could increase by P0.40 to P0.50 per liter, and kerosene by P0.60 to P0.70 per liter. Gasoline, on the other hand, may either experience no price change or a reduction by P0.10 per liter.

The price fluctuations are attributed to global geopolitical tensions and logistical challenges. The escalation of conflict in the Middle East, with attacks on Gaza and shipping disruptions in the Red Sea, has heightened concerns, pushing diesel and kerosene prices upward. Conversely, factors such as a surge in U.S. crude and product inventories, uncertainties over oil demand from major economies, and increasing OPEC supply have stabilized gasoline prices.

Oil companies typically announce price adjustments every Monday, to be implemented the following day. The last adjustment, on January 9, saw a P0.10 per liter hike across gasoline, diesel, and kerosene. To date, diesel and kerosene have seen a net decrease of P0.25 and P1.30 per liter, respectively.

In Metro Manila, the current retail prices for gasoline range from P53.40 to P76.15 per liter, diesel from P50.49 to P66.50 per liter, and kerosene from P70.64 to P82.03 per liter.