Significant Fuel Price Hike Expected Next Week

After experiencing a period of price rollbacks, the Philippines is set to witness a substantial increase in the prices of petroleum products in the upcoming week. According to Rodela Romero, Assistant Director of the Department of Energy-Oil Industry Management Bureau, the anticipated adjustments for gasoline, diesel, and kerosene are estimated to range between P1.10 and P1.50 per liter, effective Tuesday, February 20.

This upcoming price surge is attributed to several global developments, including escalating tensions in the Middle East at the Lebanese border, a notable increase in US crude stockpiles, and disruptions in shipping through critical routes like the Red Sea and the Suez Canal. Additionally, the Organization of the Petroleum Exporting Countries (OPEC) has projected a strong demand for oil in 2024, further influencing market dynamics.

Fuel price adjustments, typically announced by oil companies on Mondays to take effect the following day, have been a critical factor for consumers and businesses alike. The most recent adjustment saw a decrease in the prices of gasoline by P0.60, diesel by P0.10, and kerosene by P0.40 per liter.

To date, the cumulative adjustments for the year reflect a net increase of P4.45 per liter for gasoline, P4.30 per liter for diesel, and P0.45 per liter for kerosene. The prevailing retail prices in Metro Manila, as of the latest monitoring from February 13 to February 15, 2024, show gasoline prices ranging from P55.90 to P78.35 per liter, diesel from P53.77 to P67.40 per liter, and kerosene from P72.49 to P83.84 per liter.

This expected hike underscores the volatile nature of global oil markets and its direct impact on local fuel prices, affecting a wide array of sectors from transportation to manufacturing, and ultimately, the everyday consumer.