The continuing rally in prices in the world market will set off a fourth round of oil price hikes this month with oil companies calculating substantial P0.85 to P0.95 per liter uptick for diesel products and P0.55 to P0.65 per liter for gasoline.
For kerosene, this will also rise by heftier P0.95 to P1.05 per liter, based on the simulation of the industry players, as the demand for this commodity is already tracking uptrend.
Cost adjustments at the domestic pumps will be due on Tuesday, Sept. 28, conforming to the weekly pattern of price swings being enforced by players in the deregulated downstream oil sector.
Experts noted that global supply disruptions as aftermath of hurricane Ida in the United States and reduced production of some member-countries of the Organization of the Petroleum Exporting Countries and its ally-producers (OPEC+) have been the major factors triggering tightness in supply.
OPEC+ countries like Nigeria and Angola also failed to meet their output targets, adding more pressure on oil supply flowing to markets.
As of Friday trading, international benchmark Brent crude was at $78 per barrel or around $3.0 per barrel higher from week ago, while Dubai crude, which is the reference pricing for Asian markets, was more than $72 per barrel.
Industry watchers have been forecasting continued uptrend in global oil prices with supply tightness holding sway in the remaining months of the year due to confluence of factors – such as the wider re-opening of economies; buoyant demand as people’s mobility are already mollified; and the routine incursion of geopolitical events that could warp supply-demand fundamentals.
Prior to the pummeling of Covid-19’s Delta variant, oil market experts were already projecting the climb of oil prices to US$100 per barrel because of under-investments that have been holding the whip hand during the pandemic.
In the Philippines, many consumers will also start spending more on fuel as well as transport fares as the country has been aiming to broaden economic activities and would also be easing up further on people’s movement.
Data from the Department of Energy (DOE) showed that oil price adjustments since the start of the year still incurred a net increase of P14.55 per liter for gasoline; P12.05 per liter for diesel; and P9.70 per liter for kerosene.