Diesel prices could go up by over P5 per liter next week

Bad news is likely brewing for owners of diesel vehicles, as diesel fuel is expected to increase by over Php 5.00 for the week spanning Aug. 30 to Sept. 4. 

Heads up, diesel prices expected to go up by over P5 per liter

In a report by GMA News, industry sources are expecting diesel prices to increase by Php 5.40 to Php 5.70 per liter. Gasoline prices are also seen to go up by Php 1.30 to Php 1.60 per liter. Department of Energy-Oil Industry Management Bureau Director Rino Abad confirmed that diesel prices can indeed spike by over Php 5 per liter next week August 30. 

The report published by GMA shows a more significant price bump when it comes to the looming fuel price increase for next week. According to a Facebook post by fuel price watchdog PH Fuel Watch dated Aug. 24, diesel fuel could see a price hike of Php 4.08 per liter. Meanwhile, gasoline is also expected to be slightly more expensive, albeit with a lower increase of Php 1.17 per liter. 

PH Fuel Watch projects a hefty price increase for diesel

While it cited estimates from the Mean of Platts Singapore (MOPS) pricing standard, PH Fuel Watch says that the final rates are still subject to change depending on world market trends.  

In a separate post dated Aug. 25, PH Fuel Watch noted a general upward trend in global oil trading this week, translating to pricing estimates at the pumps the following week. According to its observations, automotive diesel oil (ADO) or diesel fuel was expected to increase by Php 2.56 as of Monday, Aug. 22, reaching Php 4.65 as of Wednesday, Aug. 24. 

World oil prices have been on an upward trend

Gasoline prices started the Monday trend with a projected increase of Php 0.67 per liter, climbing to Php 1.38 per liter two days later. As of this writing, international benchmark Brent crude stood at $101.74 (Php 5,700.54), based on an exchange rate of Php 56.05 to the U.S. dollar. 

Oil prices reportedly ended higher Wednesday after a volatile trading session amid concerns that the U.S. will refuse to accommodate more concessions to Iran. The refusal is seen to jeopardize efforts to add the oil-producing country’s crude exports to the world’s supplies. 

India has reportedly reduced its imports of U.S. crude oil by half, switching to Russian crude oil that is being sold at discounted prices. Meanwhile, Russia’s production of oil and condensate fell by 1.9 percent lower in August compared to July.  

Keep tabs on fuel price movements at Philkotse.com.