As international prices hit new historic-high of $60 per barrel, pump prices are anticipated to go up between P0.85 to P1.05 per liter across products.

           Based on the initial calculation of the oil companies, diesel prices will likely increase by P1.00 to P1.05 per liter while gasoline prices are expected to climb by P0.85 to P0.90 per liter.

For kerosene products, the calculated upward adjustments based on outcome of last week’s trading had been at P0.95 to P1.00 per liter.

           The oil companies will be implementing the price hikes on Tuesday (February 9), in keeping with the industry routine on their weekly cost movements at the pumps.

           It could be gleaned that crude prices were on rally last week, with the Dubai crude, as a pricing reference for Asian markets, rising to more than $57 per barrel; while international benchmark Brent crude hit a high of over $59 to $60 per barrel.

           As noted by experts, crude inventories – primarily in the major markets of United States and China, have been declining; and that had been seen as an indication of supply tightening already shaping up this year.

           At this stage, there are already market precautions that if oil demand will pick up at a more rapid pace than expected, supply scarcity could wobble markets especially if additional oil supply cannot be injected into market as fast as they are needed.

           In the coming spring months, it is also widely anticipated that many refineries will be on turnaround or maintenance shutdown, which could consequently constrict supply that will then trigger hikes in prices.

          In the last five weeks of price adjustments at Philippine pumps, gasoline prices so far logged a net increase of P2.40 per liter; diesel had gone higher by P1.55 per liter; and kerosene by P1.25 per liter.

          The impact of Covid-19 vaccines’ rollout in many countries is closely watched as to how this could influence easing of movement restrictions and economic activities, especially as the whole world still grapples with the crashing jolt of the new virus strain.