Fuel Price Hike Expected for First Week of September

Motorists are set to face an increase in fuel prices starting the first week of September, following recent reductions.

According to Department of Energy-Oil Industry Management Bureau Assistant Director Rodela Romero, retail prices of petroleum products are projected to rise, based on industry estimates from the past four days of international oil trading.

Expected Price Adjustments

The anticipated changes in fuel prices per liter are as follows:

• Gasoline: Increase of PHP 0.20 to PHP 0.45
• Diesel: No adjustment to an increase of up to PHP 0.20
• Kerosene: Increase of PHP 0.45 to PHP 0.55

The final adjustments, which will take effect on September 3, 2024, depend on the outcome of Friday’s trading.

Factors Influencing the Price Hike

Romero attributed the expected increase to several factors, including escalating geopolitical tensions and a sudden halt in Libyan oil production and exports, which have caused fluctuations in global markets.

“Markets are looking at the potential shift by the US Federal Reserve into its rate cut cycle starting in September, which has boosted the outlook for global economic activity and crude demand,” Romero explained. However, economic concerns in the US and China are still creating uncertainties that could temper price increases.

Recent Fuel Price Movements

Fuel companies typically announce price changes every Monday, which are then implemented on the following Tuesday. On August 27, firms reduced pump prices by PHP 1.15 per liter for gasoline, PHP 1.90 per liter for diesel, and PHP 1.85 per liter for kerosene.

Year-to-date adjustments reflect a net increase of PHP 6.90 per liter for gasoline and PHP 4.05 per liter for diesel. Kerosene has seen a year-to-date net decrease of PHP 4.00 per liter.