Oil Price Hike Expected on October 1, 2024, DOE Says
OIL PRICE UPDATE – The Department of Energy announced that oil price hike is expected next week due to Middle East tensions.
Starting October 1, 2024, oil prices are expected to increase, primarily due to increased tension in the Middle East, particularly between Israel and Lebanon.
The Department of Energy’s Oil Industry Management Bureau Assistant Director III Rodela Romero that the ongoing conflict in the region has raised concerns about supply disruptions, which may lead to higher prices for various fuel products.
Here is the projected rise in oil prices:
- Gasoline: An increase of P0.30 to P0.60 per liter
- Diesel: An increase of P0.65 to P0.90 per liter
- Kerosene: An increase of P0.40 to P0.60 per liter
Several factors are contributing to this situation. Uncertainty surrounding oil supply due to the violence in the Middle East is significant. Additionally, China’s recent economic stimulus aims to boost its economy, which might offset low demand from Europe. A decrease in U.S. crude oil inventories also signals tighter global supplies, further impacting prices.
Typically, oil companies announce their price changes every Monday, with the adjustments taking effect the next day.
Recently, gasoline prices increased by P1.20, while diesel saw a smaller increase of P0.20, and kerosene prices remained stable. Year-to-date figures show that gasoline prices have risen by P5.85, and diesel by P1.95, while kerosene has actually decreased by P6.35.
Current retail prices for fuel in Metro Manila show gasoline ranging from P50.30 to P71.45 per liter, diesel between P45.44 and P60.20 per liter, and kerosene from P66.25 to P77.65 per liter.
As the situation unfolds, drivers should be ready for another round of price increases in the coming week.
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