Diesel prices expected to go up by P6.50 per liter this week

Diesel vehicle owners will have to brace themselves as a big-time price increase looms this week, as much as Php 6.50 for every liter at the pumps. 

Fuel prices go up this week, with an especially significant increase for diesel

This was announced by oil price watchdog PH Fuel Watch on its Facebook page, placing the adjustment at a minimum of Php 6.30 per liter for diesel. Gasoline prices are also seen to climb upward, ranging from Php 2.50 to Php 2.70 per liter. The changes will take effect by 6 a.m. Tuesday, June 7. According to PH Fuel Watch, the actual prices reflected will vary depending on the gas station and location. 

The increase comes as oil prices worldwide spike in response to recent developments. On Friday, June 3, the European Union (EU) formally adopted a sixth round of sanctions against Russia for the country’s ongoing invasion of neighboring Ukraine. 

The European Union has announced a fresh round of sanctions in response to Russia's invasion of Ukraine 

These latest sanctions entail phasing out Russian crude oil and refined petroleum shipments over the next six and eight months, respectively. European Council President Ursula von der Leyen, who proposed the ban in May, said the new sanctions are expected to cut some 90 percent of Russian oil imports to the EU by the end of 2022. 

Saudi Arabia, the largest oil exporter in the world, also raised prices of its key Arab Light crude grade by $2.10 (Php 111.13) per barrel, more than the $1.50 (Php 79.38) expected by the market. This increase has been confined to Asia, the country’s biggest customer, where it sends more than 60 percent of crude oil exports. Main economies in the region led by China and Singapore are seen to resume demand for oil as they end their respective COVID-19 lockdowns.  

Saudi Arabia increased prices of crude oil exports to Asia, its biggest customer

The Organization of Petroleum Exporting Countries (OPEC+), a 23-nation cartel led by Saudi Arabia and Russia, pledged to add 648,000 barrels of oil a day for July and August to shore up global supplies. 

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