Consumers will have a harrowing drive to petrol stations this week as gasoline prices will rise by P2.60 per liter, while diesel prices will go up by P1.70 per liter, according to the pricing advisories of the oil companies.
Kerosene, which is the other commodity included in weekly price adjustments, will also have a price hike of P1.90 per liter.
As of this writing, the industry players that already sent notices on their price hikes effective Tuesday (April 11) had been Pilipinas Shell, Seaoil, Cleanfuel, Jetti Petroleum and Chevron Philippines; while their competitor-firms are all anticipated to match their implemented price increases.
The oil firms enforced the cost movements based on the swing of last week’s trading prices as anchored on the Mean of Platts Singapore (MOPS), which is the benchmark being employed in the deregulated oil market in the Philippines.
As emphasized by experts, global oil prices tracked new round of uptrend last week due to the decision of the Organization of the Petroleum Exporting Countries and ally-producers (OPEC+) to pare production by 1.16 million barrels per day starting next month.
It was indicated that this move of the global oil producers will tighten supply flow in markets, hence, that will result in higher prices for traded fuel commodities.
Market watchers further noted that the uptick in prices would have been heftier, but because of the lingering threats of economic recession, earlier anticipated wild rally in prices had been partly tamed.
As of Monday (April 10) trading, international benchmark Brent crude slightly softened to the level of $84 per barrel; from its escalation that inched close to $86 per barrel last week.
Given the apparent seesaw in prices, there is no certainty yet where trading prices will be heading to this week; therefore, there is probability that projections of sustained price hikes could still be eroded.
Any extended upswing in prices will not be beneficial to the public transport sector in the country as that could extremely diminish their daily earnings; thus, the government will need to augment that with subsidy via the Pantawid Pasada program.