Expenses for fuel will take its pinch on consumers’ pockets again this week, with substantial increases calculated across products that are retailed at the pumps due to the continuously rising prices in the world market.
Based on estimates of the industry players, gasoline prices will go up by P1.00 to P1.05 per liter; while diesel prices will likely climb by P0.75 to P0.80 per liter.
The price increase for kerosene products, a known base for aviation fuel, will be at a tamer level of P0.65 to P0.70 per liter, as reckoned from last week’s outcome of trading in the international market.
The oil companies are expected to increase their prices on Tuesday (March 2); and the main reference they have been leaning on is swing of prices anchored on the Mean of Platts Singapore (MOPS) –because majority of the players in the Philippines are importers of finished petroleum products.
As culled from the monitoring report of the Department of Energy (DOE), oil prices since the start of the year already increased by aggregate P5.20 per liter for gasoline; P4.85 per liter for diesel; and P4.35 per liter for kerosene.
Global industry experts are forecasting incessant rise in prices this year, as economies pace for accelerated rebound and movement restrictions on people also ease.
International benchmark Brent crude surged past US$66 per barrel in last week’s trading; while West Texas Intermediate (WTI) crude which is the pricing reference for the North American market, breached US$61 per barrel because of the winter season that prompted higher demand for heating oil.
Demand for fuel in the Asian region is seen on continued upswing given the vaccination programs already being rolled out aggressively in many countries, hence, this is expected stimulating demand growth in the coming months.
In the case of the United States, which is the world’s biggest oil consumer, the overall prognosis will be demand uptick in the coming months and its people may even go back this year to their routine driving season.
For the Asian market, there is anticipated tightening of supply following the shutdown of refineries in Japan after a recent earthquake; while several countries are also prepping for maintenance shutdown of their refineries.