Oil price hikes due at the pumps Tuesday
Published Mar 6, 2023 05:59 am
# Another oil price hike due Tuesday
It’s another week that will come heavy on the pockets of consumers as the price of diesel products will rise by P1.50 per liter, while gasoline prices will be increased by P0.40 per liter, as announced by the oil companies. By the same token, the price of kerosene - which is an essential commodity for households as well as industries like aviation - will also climb by P1.25 per liter, according to the industry players. As of this writing, the oil firms that already advised on upward adjustments of their pump prices had been Pilipinas Shell Petroleum Corporation, Seaoil, Cleanfuel and Chevron effective Tuesday (March 7); while their competitor-companies are all anticipated to match their pricing leads. There had been manifest rally in prices in the world market last week with expectations of demand uptick in China in the days and months ahead, that in turn would be exerting pressure on available supply in markets. Compounding such development in the international market has been persistent talks of additional production cut that Russia may resort to, as a counter-move to the price capping sanctions imposed by the European countries. Nevertheless, global experts had seen hurried seesaw in trading prices in recent end-week trading, due to mixed signals pervading in the market – such as swirling rumor that an oil producing member-country of the Organization of the Petroleum Exporting Countries (OPEC) may be breaking free from the league. By Monday (March 6), the market had been greeted with talks that China’s economic growth may just hover after all on a relatively modest pace, hence, there was already softening of prices logged by trading participants. Market watchers, however, noted that it remains too early to determine whether the downward trajectory of prices will stay for the rest of the week or not. For the Philippine market, upswing in pump prices will always be viewed as a punishing precept because many Filipino consumers are also wading through the spiraling impact of rising prices of basic commodities and services. Globally, there is no certainty yet where the pricing compass will be leading to in the immediate term, with supply tightness predicament seem reigning more often across markets due to stifled investments during the height of the coronavirus pandemic. On the overall economy, the regime of high fuel prices triggers inflationary pressure because other industries – including those in the manufacturing and public transport sector – are major consumers of oil products.
It’s another week that will come heavy on the pockets of consumers as the price of diesel products will rise by P1.50 per liter, while gasoline prices will be increased by P0.40 per liter, as announced by the oil companies. By the same token, the price of kerosene - which is an essential commodity for households as well as industries like aviation - will also climb by P1.25 per liter, according to the industry players. As of this writing, the oil firms that already advised on upward adjustments of their pump prices had been Pilipinas Shell Petroleum Corporation, Seaoil, Cleanfuel and Chevron effective Tuesday (March 7); while their competitor-companies are all anticipated to match their pricing leads. There had been manifest rally in prices in the world market last week with expectations of demand uptick in China in the days and months ahead, that in turn would be exerting pressure on available supply in markets. Compounding such development in the international market has been persistent talks of additional production cut that Russia may resort to, as a counter-move to the price capping sanctions imposed by the European countries. Nevertheless, global experts had seen hurried seesaw in trading prices in recent end-week trading, due to mixed signals pervading in the market – such as swirling rumor that an oil producing member-country of the Organization of the Petroleum Exporting Countries (OPEC) may be breaking free from the league. By Monday (March 6), the market had been greeted with talks that China’s economic growth may just hover after all on a relatively modest pace, hence, there was already softening of prices logged by trading participants. Market watchers, however, noted that it remains too early to determine whether the downward trajectory of prices will stay for the rest of the week or not. For the Philippine market, upswing in pump prices will always be viewed as a punishing precept because many Filipino consumers are also wading through the spiraling impact of rising prices of basic commodities and services. Globally, there is no certainty yet where the pricing compass will be leading to in the immediate term, with supply tightness predicament seem reigning more often across markets due to stifled investments during the height of the coronavirus pandemic. On the overall economy, the regime of high fuel prices triggers inflationary pressure because other industries – including those in the manufacturing and public transport sector – are major consumers of oil products.