Fuel price hike seen next week

Motorists should brace for pump price increases on diesel and gasoline to be implemented in the coming week.

Citing Mean of Platts Singapore (MOPS) trading and foreign exchange averages in the past four days, an oil industry source said the following are the estimated price hikes next week:

• Diesel - P2.00 to P2.50 per liter
• Gasoline - P0.75 to P1.25 per liter

The industry source said upside pressure to diesel price re-emerged due to high crude oil prices following a re-escalation of geopolitical risks in the Middle East.

Meanwhile, gasoline prices are supported by the tightness in supplies following a drawdown in global inventories, coupled with reduced refinery output as refiners in Asia are forced to process lighter grades of crude, for which refineries are not optimized, due to Middle East crude feedstock shortage.

Fuel retailers announce price adjustments every Monday, to be implemented on the following day.

This week, effective May 12, oil company increased the prices per liter of gasoline by P0.40 to P0.47 while diesel prices were slashed by P9.53 per liter to P9.60 per liter.

Kerosene prices were likewise rolled back by P13.30 per liter.

The latest price movement was the 19th for the year which resulted in a total net increase of P46.91 per liter for gasoline, P42.02 per liter for diesel, and P41.16 per liter for kerosene. —AOL, GMA News