It will be another period of added expenses for Filipino motorists next week as pump prices are anticipated to rise by P0.50 to P0.65 per liter across products.
Based on the calculation of the oil industry players, gasoline prices will inch up by P0.50 to P0.60 per liter; while diesel will be higher by P0.60 to P0.65 per liter.
The price of kerosene, another key fuel commodity for households and industries, is also estimated to increase by P0.55 to P0.60 per liter.
The uptrend in domestic fuel prices have been incessantly occurring in the past weeks, as demand for oil commodities have been on the rebound -- with heightened economic recovery ushered in by the rollout of Covid-19 vaccine.
Given the relentless escalation in prices, the net decrease in pump prices this year already shrank to P3.22 per liter for gasoline; P7.36 per liter for diesel; and P10.59 per liter for kerosene.
The country’s oil companies are also forecasting demand uptick, especially this holiday season, as manifested in the scale of traffic already being experienced in major thoroughfares in Metro Manila.
Globally, the recent decision of the Organization of the Petroleum Exporting Countries (OPEC) and its ally-producers to jack up output by 500,000 barrels per day is projected impacting market dynamics, especially in the initial months of 2021.
Within Asia, a recent analysis-report by Platts indicated demand growth for key buyers in the region, manifesting mainly in the key markets of China, India, Japan and South Korea.
The market research firm further noted that demand for gasoline in the region had been relatively steady, with commodity purchasers from Australia, Pakistan, India and Vietnam all hunting through the markets for supply in recent weeks.
“Asian gasoline demand has largely returned to pre-pandemic levels, which indicates further demand recovery in Western markets or additional refinery cuts in Asia may be needed for gasoline cracks to see further recovery,” a recent Platts report stated.
For the Philippines, demand recovery beyond the Christmas season has yet to be seen especially with a relatively gradual recovery being forecasted for the domestic economy.