For consumers still travelling back from their holiday break, they will need to cough up additional cash on their fuel budgets because the price of gasoline will rise by P0.45 per liter this week.

The oil companies similarly advised that diesel prices will increase by P0.30 per liter; while kerosene will go up by P0.40 per liter.

As of press time, the industry players that already sent notices on their price hikes had been Pilipinas Shell Petroleum Corporation, Seaoil, PetroGazz and Cleanfuel effective Tuesday (January 4); while their competitor-firms are expected to follow.

This is the first price adjustment this year for fuel commodities – and the forecast of market experts would be probable incessant price upticks for most weeks of 2021, especially if more countries could already purchase and carry out Covid-19 vaccination to their population.

The remaining concern at this point is the new wave of lockdowns, especially in Europe, because of the virus mutation --  and that is a scenario being feared by many other countries primarily those that are in the bottom of the barrel when it comes to vaccine access.

There is also expectation that the Organization of the Petroleum Exporting Countries (OPEC) and its ally-producers led by Russia, would decide on their January 4 meeting to defer plans on increasing production given the inconclusive impact yet that the new Covid-19 strain may inflict on markets.

In the Philippines, there is overall projection of demand rebound this year – which will be a reverse of the crash that the downstream oil sector ha suffered from last year.

Energy Secretary Alfonso G. Cusi pointed out if the targeted Covid-19 inoculation will be concretized by second quarter of this year, there is considerable certainty that oil demand will substantially pick up.

He cautioned though that overall consumption may still not revert to the pre-pandemic level, but he said any meaningful demand rise could be a positive development because that portends increased economic activity and greater degree of mobility for the Filipino people.

The energy chief further noted it is already a favorable signal that even the public transport has been gearing up for wider re-opening – including the return to operation of the provincial buses.

And given the pace of developments in the economy and overall easing of movement restriction on the Filipino people, Cusi indicated that the oil companies are also preparing their operations and facilities for prospective hike in demand in the coming months.