Filipino consumers are in for another financially punishing week on their fuel expenses as the price of gasoline will rise by P0.75 per liter; while diesel and kerosene prices will increase by P0.70 per liter.
As of press time, the oil companies that already advised on their price hikes had been Pilipinas Shell Petroleum Corporation, Cleanfuel, Seaoil and PetroGazz effective on Tuesday (May 11); while their rival-firms are anticipated to match the cost movements they have implemented.
This new round of surge in prices had been mainly traced to the upswing in global oil prices last week – on prospects that demand for oil commodities globally will already be on upward trajectories as more countries pace for economic recoveries.
International benchmark Brent crude had gone past US$68 per barrel last week, just over a dollar shy to the highest level it reached at US$70 per barrel in recent months.
Oil industry experts noted that demand upticks are now manifest because of the economic recoveries being registered in super power countries – primarily that of the United States, China and European nations.
For the broader spectrum of the Asian market, developments are still closely monitored in the rate of Covid-19 infections in India; as well as the re-emergence of higher cases in Japan and Thailand.
On the backdrop of increasing oil demand, market analysts are likewise weighing the impact of the decision of the Organization of the Petroleum Exporting Countries (OPEC) to relax production quotas – and this will likely exert influence on prices by next month.
In the domestic oil market, the overall sentiment of the industry players is that they are bracing for continued recovery despite the on-and-off state of lockdowns in some parts of the country.
And with the vaccination program now gradually moving, hopes are also raised that the second half operational and financial performances of the oil companies will continually improve.
By far, the oil companies are already on ‘recovery mode’ and have been doing better compared to the demand and financial crash that barreled the entire industry last year.