Manila, Philippines – After a period of price rollbacks, motorists should prepare for a significant increase in the prices of petroleum products in the coming week. The Department of Energy-Oil Industry Management Bureau (DOE-OIMB) has announced that domestic pump prices are set to rise due to recent developments in the international oil market.
The Announcement:
“We will be expecting an increase in the domestic pump prices of petroleum products by Tuesday next week due to the developments in the international oil market,” DOE-OIMB Director III Rodela Romero said on Friday. Romero pointed to oil trading in the past four days as the basis for the expected hike.
Price Adjustments:
The estimated per liter adjustments in pump prices for next week are as follows:
- Gasoline: ₱0.60 to ₱0.85
- Diesel: ₱1.45 to ₱1.70
- Kerosene: ₱1.85 to ₱1.90
Factors Contributing to the Increase:
Romero detailed several factors that have contributed to the upward trajectory of oil prices:
- Upbeat Global Demand Forecasts: Reports from the Energy Information Administration (EIA) and the Organization of Petroleum Exporting Countries (OPEC) predicting increased global demand.
- US Crude Inventories: Data showing a sharper than expected drop in US crude inventories.
- Economic Uncertainties: Uncertainties regarding the timing of the US Federal Reserve’s interest rate cut.
- International Trade Dynamics: Reduced Saudi exports to China and potential US reserve purchases.
Impact on Motorists:
This price hike is expected to have a significant impact on motorists, who will feel the pinch at the pump starting next week. The increase comes after a series of price reductions, adding pressure on household budgets and operational costs for businesses relying on fuel.
Looking Ahead:
As global economic conditions and oil market dynamics continue to evolve, motorists and businesses will need to stay informed about potential future price changes. The DOE-OIMB will monitor the situation closely and provide updates as needed.
Conclusion:
The upcoming fuel price surge highlights the volatility of the oil market and its direct impact on consumers. As the international landscape shifts, staying informed and prepared for such changes is crucial for both individuals and businesses in the Philippines.
