Motorists using gasoline products will be greeted with more favorable news at the pumps this week as the price of this commodity will be reduced by P0.90 per liter, according to the pricing advisories of the oil companies.

Conversely, however, those filling up their vehicles with diesel will experience tighter squeeze on their pockets with P0.60 per liter increase for this fuel product; while kerosene prices will also climb by a heftier P0.80 per liter.

As of press time, the oil firms that already advised on their price adjustments effective Tuesday (June 4) had been Shell Pilipinas Corporation, Seaoil, Cleanfuel and PetroGazz; while their competitor-firms are expected to follow this week’s pricing trends.

Last month’s global oil prices were generally on seesaw within the $81 to 83 per barrel for international benchmark Brent crude, but markets had been keeping a close tab on the outcome of meeting of the Organization of the Petroleum Exporting Countries (OPEC) and ally-producers.

On their meeting on Sunday (June 2) in Vienna, the OPEC+ league had agreed to extend ‘deep production cuts’ until 2025, and there are major expectations across markets that this will lift prices in the days ahead.

With such market fundamental, it is highly anticipated that global oil prices will be tracking fresh round of uptrend; and this may subsequently trigger price hikes in the coming weeks.

For the Philippine market, volatile oil prices will continue to impact not just on consumers’ pockets but will also make a dent of the country’s overall economic growth targets.

Beyond rise in oil prices, the country is also wading through concerns of the rising value of the US dollar versus Philippine peso; and that will essentially take a pinch on the industry players’ fuel importation – as the greenback’s value had gone up way above P58 last week.

The major determinants for fuel pricing adjustments are importation costs of fuel commodities, foreign exchange rate, biofuel blends as well as market premium and logistics costs.

Primarily for biofuel blend to diesel and gasoline products, new policy enforcements will be concretized by October this year as previously announced by the Department of Energy.