The tsunami of oil price hikes will continue this week, with the cost of diesel rising by P1.25 per liter; while kerosene prices will increase by P1.10 per liter, based on pricing adjustment notices already sent by the oil companies.
For gasoline products, the upward adjustment this week will be comparatively smaller versus other fuel commodities, to the tune of P0.75 per liter.

As of press time, the oil industry players that already announced price upticks had been Pilipinas Shell Petroleum Corporation, Seaoil, Cleanfuel, PetroGazz, PTT and Petron effective on Tuesday (February 16); while their rival-firms are expected to be matching their adjustments.

The escalation of prices in the world market had been more pronounced in the past two weeks; because of reported reduction in global oil inventories -- primarily in the case of the United States.

Despite current developments though, global producers in their recent meeting this month continued to adhere to their production cut commitments, hence, the ensuing rally in prices globally.

Given that the Philippines is a highly import dependent market, its consumers have been directly feeling the adverse financial impact of incessantly rising prices in the world market.

Based on a recent monitoring report of the Department of Energy (DOE), it stated that “crude oil futures have been settling higher amid tightened supply outlooks,” compounded by expectation of demand rebound and the weaker US dollar versus other global currencies.

And with the accelerating Covid-19 vaccine rollout, it has also been emphasized that the feared another wave of pandemic infections, had somehow receded – especially in the cases of the United States, United Kingdom and even China.

Within Asia, it is similarly projected that the pandemic’s blow may have been abating, as more and more countries have been easing restrictions on the movement of their population as well as on the re-opening of various segments of their economies.

“The bullishness in the oil market comes amid signs the pandemic was starting to ease globally, spurring confidence among investors about the macroeconomic climate,” the monitoring report has noted further.