Another hike in pump prices seen

MANILA, Philippines — Big fuel price increases will greet motorists this week.

In an advisory, Unioil Philippines said motorists should expect fuel prices to go up this week.

“Diesel should increase by P1 per liter. Gasoline should increase by P1 to P1.10 per liter,” it said.

Local pump prices are expected to rise despite the negative trend in the international oil market.

Global oil prices started the past trading week on a negative note after Saudi Arabia and two other Gulf producers said they would not maintain supplemental reductions that amount to more than a million barrels of daily supply, Reuters reported.

While oil prices managed to rise mid week, trading turned sour towards the close of the week amid the resumption of demand worries due to rising coronavirus cases globally.

The local price hike could factor in the additional import duty imposed by the government on petroleum products.

The additional 10 percent duty on crude oil and refined petroleum products is based on Executive Order (EO) No. 113 signed by President Duterte to raise funds for its response efforts to fight the coronavirus disease 2019 (COVID-19).

Earlier, the Department of Energy (DOE) said the additional tariff would only be implemented to the new stocks of oil importers and companies.