Oil Price Hike Expected Next Week, Gasoline Stations Say
PUMP PRICE UPDATE – Various gasoline stations in the country are expecting an oil price hike starting next week.
On Friday (May 24, 2024), the Department of Energy (DOE) forecasted increases for gasoline, diesel, and kerosene next week as the peso goes weaker and production cuts in the global oil market.
DOE Oil Industry Management Bureau assistant director Rodela Romero confirmed the price hike of petroleum products.
It is expected that gasoline prices of P0.45 to P0.65 per liter, and diesel prices will rise by P0.35 to P0.55 per liter. Kerosene prices could go up from P0.45 to P0.60 per liter. These estimates are based on the recent four-day trading period.
Romero explained that the price hikes are due to several factors including stronger dollars, increased demand from China, and OPEC+ production cuts.
“The estimated increases in the prices of petroleum products for next week are attributed to the OPEC+ production cut where analysts are awaiting the June 1 meeting that will focus on their output policy; a stronger dollar that makes crude oil more expensive for non-dollar economies and the rebound in demand from China,” said Romero.
Last week, gasoline prices dropped by P0.10 per liter, diesel prices went down by P0.25 per liter and kerosene prices decreased by P0.30 per liter.
As of May 21, the year-to-date adjustments showed a per-liter increase of P7.15 for gasoline and P4.45 for diesel.
Usually, fuel companies are set to announce the final price adjustments on Monday and implement them on the following day. Consumers should be prepared for these changes.
Higher fuel prices directly affect transportation costs followed by the increase of goods and services.
The social media users expressed their reactions to the announcements:
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