With combined impact from the rising value of the US dollar and surging prices in the international market, big time hikes in fuel prices, particularly gasoline products, are due next week.
Initial calculation by oil firms based on last week’s trading, gasoline prices could increase by P1.15 to P1.30 per liter, while diesel prices will go up by P0.55 to P0.65 per liter.
Kerosene,, the base for aviation fuel and also a vital commodity for households, prices are calculated to rise by as much as P0.60 to P0.70 per liter.
Oil companies are expected to implement these price increases on Tuesday (July 13), being the industry’s routine in the enforcement of cost movements in the deregulated downstream oil sector.
Prior to this adjustment, a monitoring report of the Department of Energy (DOE) showed that price swings since the start of the year already resulted in a net increase of P12.35 per liter for gasoline; P10.00 per liter for diesel; and P8.35 per liter for kerosene products.
For the month of July alone, this is already the second series of price hikes that will be making a dent on consumers’ pockets; and that followed a five-week wave of upward adjustments last month.
The depreciating value of the local currency versus the greenback is seen as the other major factor that will wield enormous pressure on pump price adjustments in the domestic oil market, especially so since the Philippines is heavily import-dependent on its fuel needs.
As culled from the projection of global experts, price increases may reign in the oil markets in the coming weeks and months – given the rising demand in major countries that have already enforced wider economic reopening; and that’s providing a counterweight to the rising cases of Covid-19 infections in other parts of the world.
The stalemate in the decision of the Organization of the Petroleum Exporting Countries (OPEC) on targeted hike in production has not also been helping in easing world oil prices.
Market analysts further noted that the wallop of hurricane Elsa in the Atlantic Ocean also pushed prices higher in last week’s trading, primarily because it affected offshore oil production in the Gulf of Mexico. ###