Filipino motorists will need to cough up higher budgets in filling up their vehicles this week as prices of diesel will rise by P0.90 per liter and gasoline by P0.55 per liter.

The price of kerosene product, a commodity that is essential for households and also a base for aviation fuel, will be increasing by a higher scale of P0.95 per liter.

As of this writing, the oil companies that already sent notices on their price hikes effective Tuesday (September 28) had been Pilipinas Shell Petroleum Corporation, Cleanfuel, Seaoil, PetroGazz, Chevron and Total while the rest of the industry players are anticipated to follow the price trends set by their competitor-firms.

For the whole month of September, pump prices have been on upticks and that already accrued to aggregate price hikes of P2.25 per liter for gasoline; P3.00 per liter for diesel; and P2.55 per liter for kerosene.

Global experts have been forecasting continued tightening of supply because of demand uptrend mainly driven by broadened reopening of more economies due to higher Covid-19 vaccination rates that they have already been achieving for their citizens.

Other factors, such as supply disruptions and geopolitical incidents – including the spillover effect of hurricane Ida’s hit in the United States -- have also triggered upswing in international prices in recent weeks.

In addition, there had been reports of failing compliance to production quota of some member-countries of the Organization of the Petroleum Exporting Countries (OPEC) and its ally-producers, and that in turn had been contributing to overall supply tightening.

In the remaining months of the year, industry players are anticipating continued escalation in global oil prices that will mirror 2018 prices that have been hitting close to US$80 per barrel then.

As of last week, international benchmark Brent crude was already climbing to the US$77 to US$78 per barrel; and such had been projected getting sustained in the coming days and weeks.

The Philippine is highly vulnerable to price upswings happening in the world market because of its heavy reliance on importation when it comes to meeting domestic fuel needs.

And with the wider economic re-opening of the country following decline in Covid infections, especially in the capital, the oil companies are expecting that their volume sales will also be improving in the remaining months of the year.