Gasoline, diesel price hikes expected on Tuesday –DOE

Gasoline and diesel prices are expected to increase on Tuesday, according to Bernadette Reyes’ “24 Oras Weekend” report on Saturday.

The Department of Energy (DOE) said the possible price adjustment was due to reports that Russia would cut the production of crude oil.

“Itong mga bansang nasa Europe, eh mapipilitang kumuha sa ibang other sources kung magkakaroon ng pagtaas ng demand sa produkto and then wala naman pangyayari na madagdagan ang supply, so tataas ang presyo,” said DOE Oil Industry Management Bureau Assistant Director Rodela Romero.

(European countries will be forced to find other sources if the demand for oil increases without an increase in production. So prices will increase.)

An oil industry source expects prices of diesel to be hiked by P0.60 to P0.85 per liter, and gasoline by between P0.40 to P0.65 per liter.

Oil industry source: Estimated Price INCREASES for this week:

DIESEL
P0.60 - P0.85/liter

GASOLINE
P0.40 - P0.65/liter@gmanews

— Tina PanganibanPerez (@tinapperez) February 19, 2023

According to the International Energy Agency, world oil demand is expected to increase by two million barrels per day this year.

China is among the countries expected to increase demand due to the lifting of their zero COVID-19 policy.

The DOE said fuel prices usually decrease in the first six months of a year.

The latest data available from the DOE show that year-to-date net decreases stand at P2.15 per liter for diesel and P0.25 per liter for kerosene, while gasoline remains at a net increase of P5.10 per liter.

The department also said it was waiting for the United States’ interest rate decision which can affect fuel prices.

“Patapos na yung taglamig pero ngayon may lingering factors… Kapag nagtaas ang interest rate ng mga malalaking bansa ibig sabihin nag-slowdown economic activity nila tapos naka-cut yung fuel demand,” Romero said.

(While winter is coming to an end there are other lingering factors. If developed countries raise their interest rates this means a slowdown in their economic activity and this cuts their demand for fuel.) — Richa Noriega/DVM, GMA Integrated News