Diesel, gasoline prices set to rise this week  

The streak of falling fuel prices comes to an end on Tuesday, December 20, as increases await motorists at the pumps of their preferred fuel brands.

Motorists will have to contend with fuel price increases for the week ending on Christmas Day

Various oil firms have announced that they will hike prices for diesel, gasoline, and kerosene. On its Facebook page Sunday, fuel price watchdog PH Fuel Watch previously projected an increase of between Php 2.10 and Php 2.40 for every liter of diesel, while gasoline prices will see increases of between Php 0.40 and Php 0.70 per liter. 

The price adjustments were subsequently confirmed in separate announcements made by Pilipinas Shell, Caltex, Cleanfuel, Seaoil, PTT Philippines, and Petrogazz. Diesel will have the biggest increase by Php 2.90 per liter, exceeding projections by Php 0.50. The increase in kerosene prices has been pegged at Php 1.65 per liter, while gasoline brings the smallest price movement, becoming Php 0.70 per liter more expensive. 

Diesel prices have been on a downward trend since October 25, 2022. Meanwhile, gasoline prices were slightly more erratic, posting increases in the second and third weeks of November before eventually being subjected to rollbacks.

Seaoil's fuel price adjustment echoes the general movement across the industry [Image: Seaoil FB page] 

Local oil industry sources cited oil trading from December 12 to 15 as their basis in anticipating fuel price hikes. “Mayroon tayong nakikitang bahagyang pagtaas (We are seeing a slight increase),” said Department of Energy-Oil Industry Management Bureau Director Rino Abad.

He adds that the anticipated price increases are fueled in part by the expected rebound of oil demand in China. The country is reopening its economy after enduring yet another round of lockdowns due to COVID-19.     

As of trading on December 14, Brent crude futures settled at $82.70 (Php 4,582.28) per barrel, while U.S. West Texas Intermediate crude futures landed at $77.28 (Php 4,281.97) per barrel. World oil prices have been buoyed by the International Energy Agency’s (IEA) predictions of a rebound in demand for 2023, along with the expected easing of U.S. interest rate hikes.

OPEC expects oil demand for 2023 to reach over 100 million barrels per day   

The Organization of Petroleum Exporting Countries (OPEC) said it expects oil demand to grow by 2.25 million barrels per day for 2023, totaling 101.8 million barrels per day. 

Keep a close eye on fuel price movements with Philkotse.com.