It will be another financially tormenting drive to the petroleum stations for consumers this week as the price of diesel products will rise by P1.20 per liter; while gasoline prices will increase by P0.50 per liter.

The oil companies similarly advised that the price of kerosene products will climb by P1.10 per liter; a market development that may drive up costs for aviation travels as well as for the use of this vital commodity at households and other key industries.

As of this writing, the oil companies that already sent notices on their price hikes effective Tuesday (Sept. 5) had been Shell Pilipinas Corp., Cleanfuel, Seaoil, PetroGazz and Chevron Philippines; while their competitor-companies are all anticipated to follow.

This is already the ninth week in series of upward price adjustments that started in July; and this has not been bringing in any bit of good news to the Filipino consumers because this entails highly probable escalation of fare costs as well as higher prices of basic services and commodities.

Its spiraling effect on the transport sector is already very apparent, because the public utility vehicle (PUV) drivers can no longer be stopped on their bid for fare hikes.

Cost movements at the domestic pumps are anchored on the swing of prices that had been indexed with the Mean of Platts Singapore (MOPS); plus added cost pressure from the depreciation of the Philippine peso’s value versus the US dollar - on top of warranted market premium and charges for biofuel blends.

According to global experts, prices in the world market tracked fresh wave of upswings last week because of reigning market anticipation that the Organization of the Petroleum Exporting Countries and its ally-producers led by Russia (also known as OPEC+) will likely extend production cuts into next month; and there are also expectation of export restraints.

As hinted by Russian Deputy Prime Minister Alexander Novak, there was already ‘agreed parameters’ on the level of output that OPEC+ members will pursue in the months ahead; and the prevailing sentiment that will be announced this week is on continuing the production cuts.

The preponderance of supply concerns is also aggravated by reports of substantial inventory decline in the US market; while the recovery of China’s manufacturing sector has been compounding tight supply dynamics in markets.

The current developments in the international market portend price hikes likely continuing in the weeks and months ahead; and that will certainly redound to aggravated squeeze not just on the wallets and paychecks of Filipino consumers but also on the country’s economy in general.