The Department of Energy forecasts an oil price hike across all petroleum products of as much as P0.90 per liter next week amid continued geopolitical tensions.
DOE Oil Industry Management Bureau (OIMB) director Rodela Romero said yesterday that as a result of the monitoring on the 4-day trading in Mean of Platts Singapore, the pricing benchmark use by oil importers, and recent developments in the international oil market, “we will be expecting an increase in the domestic pump prices by next.”
Romero estimates the increase at P0.15 to P0.60 per liter for gasoline, P0.50 to P0.90 per liter for diesel and P0.25 to P0.40 per liter for kerosene.
She said this can be attributed to “persistent geopolitical tensions” such as the conflict between Russia and Ukraine; and US and Iran nuclear deal; supply concerns with production in Canada disrupted by the wildfires; and state of US crude oil inventories after a larger-than-anticipated drawdown.
Jetti Petroleum president Leo Bellas confirmed the possibility of an oil price hike with forecasts ranging from P0.70 to P0.90 per liter for diesel and P0.40 to P0.60 per liter for gasoline.
“The considerable rebound on oil prices this week is primarily driven by supply worries due to geopolitical concerns. Firmer demand for gasoline and diesel, with the start of the summer driving season in northern hemisphere countries, and lower regional supply, due to ongoing refinery maintenance and persistently low outflows from China, have further supported prices,” Bellas said.
On June 3, the oil firms increased the price of gasoline and diesel by P0.40 and P0.30 per liter, respectively but cut the price of kerosene by P0.10 per liter.
Prevailing retail prices of petroleum products for the week of May 27 to June 2 in the National Capital Region showed that gasoline sells from P44 to P71.23 per liter, diesel from P44 to P66.27 per liter and kerosene from P67.49 to P82.54 per liter.
