After five successive weeks of rollbacks, fuel prices are expected to be on the rise beginning this week, especially for diesel which is likely to have a hefty increase.
It's going to be a major increase for diesel users [Image: PH Fuel Watch FB page]
In a Facebook post by oil price watchdog PH Fuel Watch, prices for diesel are projected to cost between Php 6 and Php 6.20 more per liter by Tuesday, October 11. Meanwhile, gasoline prices are seen to increase by Php 1.20 to Php 1.40 per liter at the pumps.
Independent oil player Unioil’s forecast hews closely to these estimates. It predicts a price increase of Php 5.90 to Php 6.00 per liter for diesel, while its gasoline products will hike prices by Php 1.10 to Php 1.30 per liter.
Cleanfuel has advised consumers of an even bigger increase for diesel at Php 6.85 per liter, while gasoline will cost Php 1.20 more per liter. The company says these price adjustments take effect on October 11 at 8:01 a.m.
Cleanfuel warns that its diesel price increase could reach almost Php 7 per liter [Image: Cleanfuel FB page]
Oil companies base their pricing on rates set by the Mean of Platts Singapore (MOPS), which have been on the upswing following announced reductions in global oil output by the Organization of Petroleum Exporting Countries (OPEC+). The group and its allies have agreed to cut production by an estimated two million barrels per day, representing two percent of global supply.
Global crude prices jumped around four percent to a five-week high on October 7 because of the announcement, also powered by a stronger dollar. Data showed that the U.S. economy was creating jobs at a strong pace, providing the U.S. Federal Reserve with a reason to continue hiking interest rates.
The impending price increases this week are seen to negate savings earned by consumers in the last five weeks, stretching from September to the first week of October.
Transport groups are again petitioning government to suspend excise taxes on fuel
Months after the new Marcos administration assumed the reins of government, there is no concrete mechanism in place yet to address the issue of rising fuel prices that is expected to impact marginalized sectors. A previous proposal to institutionalize subsidies for users such as public transport and agriculture has yet to be realized.
Transport groups have revived calls to temporarily suspend excise taxes on fuel, as well as for government to review the provisions of the current oil deregulation law.
Monitor fuel price movements at Philkotse.com.