Hefty pump price hikes expected next week

MANILA, Philippines — Motorists should brace for another round of fuel price hikes next week, with increases expected to exceed P1 per liter.

Based on four-day trading in the global oil market, the Department of Energy projects per-liter price increases of P0.90 to P1.40 for gasoline, P1 to P1.40 for diesel and P1 to P1.20 for kerosene.

Rodela Romero, assistant director of the DOE’s Oil Industry Management Bureau, said global oil prices have risen amid renewed optimism over a potential trade deal between the US and China.

OPEC, or the Organization of Petroleum Exporting Countries, also expects oil demand to remain robust over the next two and a half decades, Romero noted.

Other factors contributing to the estimated increases include the pessimism over nuclear talks between the US and Iran, as well as declining US crude inventories, according to industry sources.

“Increased concerns of escalating tensions in the Middle East that could disrupt oil supplies following Israel’s attack on Iran have pushed crude prices up by five percent,” Jetti Petroleum president Leo Bellas said.

Yesterday’s trading would determine the final price adjustments, which will be announced on Monday and take effect the following day.

Last Tuesday, oil firms raised pump prices by P0.60 per liter for gasoline, P0.95 for diesel and P0.30 for kerosene.