Following a very marginal financial breather last week, consumers will be welcoming the New Year with fresh round of fuel hikes.

Industry players estimated that gasoline prices will go up by P0.35 to P0.45 per liter and diesel products by P0.25 to P0.30 per liter.

Kerosene, which is the base for aviation fuel, is also expected to increase by P0.35 to P0.45 per liter.

The domestic petroleum companies will be implementing the projected price increases on Tuesday (January 5) and it will be the first adjustments at the pumps this 2021.

Given the new wave of travel restrictions in Europe, market analysts noted that Asian markets could be in for a relatively robust market performance in the initial quarter of 2021, although with some caution given the "uncalculated impact" yet of the new Covid-19 strain.

There are also expectations that the Organization of the Petroleum Exporting Countries (OPEC) and its ally-producers may re-consider their decision on production hike, in view also of the virus mutation that already started overwhelming many countries. The OPEC+ alliance will have its meeting on January 4 this year.

For the Philippine oil market, the general expectation laid down by the DOE is for demand to go up once Covid-19 vaccine will have its rollout in the country – and this is targeted around second quarter. The government is acknowledging though that it will be a ‘difficult ascent’ to the top given assessments of independent experts that the Philippines skidded to the bottom or it emerged as the ‘worst performing economy’ in the Southeast Asian region in the midst of the pandemic.