The next fuel price adjustment is set to go two ways next week, this time with owners of gasoline vehicles advised to brace for another round of increases.
Prices for gasoline and diesel are expected to go in two different directions next week
According to a Facebook post by PH Fuel Watch Wednesday, diesel fuel is set to roll back by Php 1.27 per liter. Meanwhile, gasoline prices are seen to go up by Php 3.71 per liter at the pumps. The figures are based on the Mean Of Platts Singapore (MOPS) pricing index, with PH Fuel Watch saying that the actual prices could still change depending on the world market.
According to a Facebook post by PH Fuel Watch Wednesday, diesel fuel is set to roll back by Php 1.27 per liter. Meanwhile, gasoline prices are seen to go up by Php 3.71 per liter at the pumps. The figures are based on the Mean Of Platts Singapore (MOPS) pricing index, with PH Fuel Watch saying that the actual prices could still change depending on the world market.
Demand for oil is expected to increase with Shanghai's economic activity rebounding after more than six weeks of lockdowns
This is the first time that price adjustments for both fuel products have diverged in six months, typically rising or falling together since 2022 started. The last time a difference in pricing trends was observed was on November 16, 2021, when gasoline prices rolled back by Php 0.90 per liter while no change was recorded for diesel.
Global developments continue to influence oil prices in the world market, chief of which is the ongoing conflict between Russia and Ukraine. International benchmark Brent crude went up by 1 percent in early Asian trade Wednesday to settle at $113.08 (Php 5,923.75) per barrel, while West Texas Intermediate (WTI) crude price increased 1.4 percent ending at $114.02 (Php 5,972.99) per barrel.
The European Union has no consensus yet on banning Russia's oil exports following the country's invasion of Ukraine
The price hikes were anchored on hopes of China’s economic recovery, as the country eases some of its restrictions caused by a recent wave of infections involving the COVID-19 Omicron variant. Its biggest urban area, Shanghai, recorded no new cases for three straight days outside of its quarantine zones, raising the possibility of ending more than six weeks of lockdowns.
According to market analysis firm ANZ Research, crude oil prices are expected to go down further as the U.S. plans to ease sanctions placed on oil from Venezuela. Apart from increasing world crude oil supplies, this will allow European companies in the South American country to divert more oil to Europe, helping the continent reduce its dependence on Russian crude.
Keep an eye on fuel price movements here at Philkotse.com.