Up to P5.50/liter hike for diesel, P4.50/liter for gasoline seen next week

Motorists should tighten their belts in the coming week, after a sigh of relief this week, as pump prices are expected to go up big-time.

Citing estimates based on full-week (August 31 to September 4) Mean of Platts Singapore trading and foreign exchange averages, an oil industry source said the following fuel price adjustments could be implemented:

• Diesel - P4.50 to P5.50 per liter
• Gasoline - P4.00 to P4.50 per liter

“Continued US strikes on Iran and renewed Israeli threats against Tehran have kept Middle East supply risks and oil prices elevated,” the source said.

“The considerable depreciation of the Philippine peso this week versus the US dollar also contributed to the further swelling of the potential increase on next week’s prices,” the source added.

Oil companies announce price adjustments every Monday, to be implemented on the following day.

This week, effective September 1, fuel firms slashed pump prices by P0.30 to P0.40 per liter for gasoline, P3.80 to P3.90 per liter for diesel, and P3.80 per liter to P3.84 per liter for kerosene.

The latest price adjustments, the 35th movement for this year, resulted in a total net increase of P54.62 per liter for gasoline, P55.26 per liter for disel, and P47.85 per liter for kerosene.

“Middle Eastern fuel exports remain constrained due to the persisting conflict and Russian supply to the international markets limited amid continued disruption to the country’s refinery operations,” the industry source said.

“Despite China easing its refined product export controls, fuel markets in Asia remain tight as supplies from other global suppliers are still restricted,” the source added. —KG, GMA News