Oil prices to slightly go up next week

Published April 24, 2021, 12:22 PM

by Myrna M. Velasco

Filipino consumers will need to beef up their fuel budgets as prices at domestic pumps could slightly rise again next week based on the calculations of oil industry players.

For gasoline products, the estimates would be an increase of P0.40 to P0.50 per liter while diesel by a marginal P0.25 to P0.35 per liter.

MB file photo. (Mark Balmores)

The price of kerosene, which is another commodity in the triumvirate of weekly cost adjustments, has also been calculated to go up by P0.55 to 0.65 per liter.

The oil companies will be adjusting their prices on Tuesday (April 27), in accordance with the cost movement routine already institutionalized in the deregulated downstream oil sector; and on cost swings generally anchored on the Mean of Platts Singapore (MOPS).

Before the implementation of next week’s price hikes, a monitoring report of the Department of Energy (DOE) showed that cost movements since January this year still posted a net increase of P7.15 per liter for gasoline; P5.35 per liter for diesel; and P4.30 per liter for kerosene.

Global experts have started cautioning on possible tightening of supply as demand for oil commodities accelerate, especially in countries that are already advancing on their inoculation program versus the Covid-19 pandemic.

In the forthcoming week, what is being closely monitored by market watchers will be the price pressure possibly resulting from the decision of global oil producers to finally relax previously agreed production cuts – and that is set for enforcement starting May.