Motorists, time to gas up as fuel prices are expected to hike beginning Tuesday, February 21.
Consumers are advised of fuel price increases this week
In its latest estimates, fuel price monitor PH Fuel Watch projected that diesel prices will increase between Php 0.70 and Php 0.90 per liter. Meanwhile, gasoline is also expected to be Php 0.50 to Php 0.70 per liter more expensive at the pumps. For kerosene, a price slash of Php 0.15 per liter is expected at the most.
Pilipinas Shell announced that it will raise diesel prices by Php 1.05 per liter, gasoline by Php 0.90 per liter, and kerosene by Php 0.25 per liter. These adjustments will take effect by 6:00 a.m. Tuesday.
Cleanfuel will implement similar price increases of Php 1.05 per liter for diesel and Php 0.90 per liter for all gasoline products. The new prices will be reflected by Tuesday 4:01 p.m.
Several oil companies have already confirmed the price adjustments
Unioil has also given word that it will hike diesel prices by as much as Php 0.80 per liter, while gasoline will cost up to Php 0.60 per liter more.
The latest round of price movements were confirmed by the Department of Energy (DOE), based on world oil price movements over a four-day trading period. “Yes, there will be an increase in the prices of petroleum products on Tuesday, February 21,” said DOE Oil Industry Management Bureau Director Rodela Romero.
Oil companies in the domestic deregulated downstream oil industry use the Mean of Platts Singapore (MOPS) as their pricing benchmark.
World oil demand is projected to increase by 2 million barrels this year
Romero noted several factors contributing to the fuel price hike, chief of which is Russia’s plan to reduce crude oil production. The International Energy Agency’s (IEA) announcement of world oil demand increasing by 2 million barrels per day in 2023 also reportedly contributed to the price uptick.
Another is the demand for oil in China, one of the world’s biggest consumers of the commodity. The country is expected to resume its economic activity following the lifting of its Zero COVID policy.
Get your fill of more oil industry updates at Philkotse.com.