(UPDATE) MANILA, Philippines — Oil firms announced on Friday that gasoline and diesel prices would go up again starting this coming Tuesday.
They said that gasoline prices would increase by around P1 up to P1.20 per liter, and diesel by about P0.60 up to P0.80.
This is the fifth consecutive week that both gasoline and diesel prices would go up.
These estimates are based on the 4-day trading of Mean of Platts, Singapore, the pricing basis of refined goods in Southeast Asia.
Sources said the main reason for the increase was due to the escalation of geopolitical tensions as Ukraine damaged several Russian oil facilities.
“Prices of crude oil and refined fuel products have gone up this week on worries that Russian supplies could be disrupted due to increased aggression in the Russia-Ukraine war, as the intensified attacks by Ukraine on Russia’s ports and refineries have already impacted Russian supplies. Moreover, there are also rising concerns of a broader escalation of tensions in the Middle East which in turn are also contributing to the increase,” Jetti Petroleum president Leo Bellas said.
“In addition, strong diesel demand in Northern Hemisphere countries ahead of the autumn season, and damage to Russian refining infrastructures and export facilities have affected diesel flows, tightening the supply outlook. While gasoline demand indicators continue to weaken, operational issues in major refineries have affected gasoline trade flows and the upcoming refinery turnarounds are expected to tighten supply,” he added.
“Based on the 4-day trading in Mean of Platts, Singapore only, excluding other related expenses such as the cost of doing business, taxes, etc., we will experience an increase in the prices of petroleum products by next week. The relevant news for this week contributing to the estimated adjustments are the continued geopolitical risks due to additional US sanctions on Russian oil, EU’s discussion on the 19th Russian sanction package and Ukraine’s massive drone strikes on 361 Russian energy sites,” Department of Energy-Oil Industry Management Bureau director Rodela Romero said.
“Final adjustments in the pump price will be determined after today’s trading and with the incorporation of oil company’s cost of doing business,” she added.
Local oil companies this week adjusted fuel prices, with gasoline increasing by P0.10 per liter, and diesel by P0.50.
