Motorists filling up their vehicles with gasoline products will feel some pinch in their pockets this week as the price of this commodity will increase by P0.50 per liter, according to the pricing advisories of the oil companies.

Conversely, diesel products will incur a moderate rollback of P0.40 per liter; along with kerosene product prices which will also be trimmed by P0.35 per liter.

As of this writing, the industry players that already sent notices on their price adjustments effective Tuesday (March 5) had been Shell Pilipinas Corporation and Seaoil; while their rival-firms are expected to match adjusted prices.

As a weekly routine, the oil firms have been reflecting price fluctuations at the domestic pumps based on the outcome of trading in the regional market as referenced on the Mean of Platts Singapore (MOPS), but the factor triggering added price pressure had been the risk premium arising from the Red Sea friction.

That geopolitical event has been affecting price swings in oil markets since November last year due to the rerouting of the commercial vessels in delivering fuel commodities to markets.

As emphasized by global experts, the seesaw in prices skidded more into the ‘softening track’ last week, mainly due to weaker economic figures reported by China as well as the major economies in Europe – and those were mainly propelled by slowdown in their manufacturing sectors.

As of Monday (March 4) trading, international benchmark Brent crude was roughly steady at $83 per barrel level, and there are no developments manifesting yet that could trigger wild gyration in prices in the days ahead.

For this week, the most awaited development will be announcement from the Organization of the Petroleum Exporting Countries and ally-producers (collectively known as OPEC+) on whether they will scrap or continue their voluntary output reduction.

In the US market, in particular, there is also expectation on a decision for interest rate cuts, but its impact on oil markets is still not apparent at this time.

For an oil import-dependent economy like the Philippines, it always comes as a bit of bad news when prices tick up at the pumps, hence, that is the market development which often requires keen attention from the government – especially in supporting the public transport’s need for financial subsidy.