Fuel price hike of more than P1 seen amid supply worries

| INQUIRER FILE PHOTO

MANILA, Philippines — Local pump prices might increase by up to more than P1 per liter this week, mainly driven by geopolitical tensions triggered by the escalating geopolitical situation around Russia.

Unioil said over the weekend that diesel and gasoline prices might rise by 90 centavos to P1.10 per liter based on the five-day trading in the global market.

Jetti Petroleum president Leo Bellas said diesel and gasoline prices are estimated to rise by P1 to P1.20 per liter.

READ: Fuel price cuts of up to P1 expected this week – DOE

Meanwhile, the Department of Energy (DOE) hinted at upward adjustments for all petroleum products according to the four-day global trading: 70 to 90 centavos per liter for gasoline, 70 centavos to P1 per liter for diesel and 60 to 70 centavos per liter for kerosene.

Rodela Romero, director of the DOE Oil Industry Management Bureau, said the geopolitical tensions between Russia and Ukraine “continued to dominate sentiment, underpinning the week’s gains.”

READ: Fuel prices to surge up to P1.90 per liter next week

“Russia’s oil refinery business is at risk of plant closure amid heavy losses [and] lower production,” Romero said in a message.

Sellers’ market

Data from the US Energy Information Administration showed that Russia was the third-largest producer of oil worldwide in 2023, holding a market share of 11 percent. The United States and Saudi Arabia ranked first and second, respectively.

Bellas also said concerns over an oversupplied market in the coming months pushed pump prices upward.

Meanwhile, Romero said the oil production outage in Norway affected the local pricing of petroleum products.

Last week, firms slashed the price of gasoline by 85 centavos per liter, diesel by 75 centavos per liter and kerosene by 90 centavos per liter.