Pump prices to go up next week

Published December 5, 2020, 1:53 PM

by Myrna M. Velasco

Consumers will still need to allot more for their fuel budgets next week as pump prices will rise again, although at a leaner magnitude, based on the calculation of the oil companies.

As estimated, the price of gasoline will go up by P0.20 to P0.25 per liter while diesel will have an increase of P0.35 to P0.40 per liter.

Kerosene prices, on the other, will have a heftier upward adjustment of P0.55 to P0.65 per liter, according to the industry players.

Consistent news of favorable development on Covid-19 vaccine portends of wider economic reopening in many parts of the world, hence, there is appreciable expectation that demand for oil commodities will already escalate next year.

Nevertheless, in the assessment of Platts Analytics “the timeline for vaccine rollouts remain uncertain, highlighted by news that the Oxford-AstraZeneca vaccine will undergo a further trial following uncertainties over data from the last trial.”

But more auspicious news on Covid-19 vaccine also came last week, with United Kingdom regulators already approving the commercial use of a vaccine manufactured by Pfizer BioNTech, which was rated to have an efficacy of more than 90-percent.

With recent developments, the Organization of the Petroleum Exporting Countries (OPEC) and ally-producers led by Russia – or what is widely known in the global oil sector as OPEC-plus, had decided last week to jack up production by 500,000 barrels per day starting January next year.

The OPEC-plus indicated that they will meet monthly to re-evaluate market dynamics and will decide accordingly on warranted adjustments on oil output that will be pumped into markets.

The Asian market is still expected to be on the forefront of economic rebound in a post-Covid scenario, especially for major economies like China and India.

In the Philippines, after last week’s massive price hikes, the net decrease in pump prices posted throughout the year had been trimmed further – and that is just now at the scale of P3.47 per liter for gasoline; P7.76 per liter for diesel; and P11.19 per liter for kerosene products.