OIL PRICE HIKE SEEN ON FIRST WEEK OF SEPTEMBER

After a round of big-time reductions, pump prices are expected to go up on the first week of September (Photo courtesy of GMA News)

Retail prices of petroleum products such as gasoline, diesel, kerosene, as well as cooking gas, are expected to increase next week.

According to the Department of Energy-Oil Industry Management Bureau Assistant Director Rodela Romero, citing the international oil trading in the past four days the domestic pump prices are expected to go up by:

Gasoline - P0.20 to P0.45 per liter

Diesel - no adjustment to increase of P0.20 per liter

Kerosene - P0.45 to P0.55 per liter

The estimated per liter fuel price hike is attributed to “combination of escalating geopolitical tensions and a sudden halt in Libyan oil production/exports [that] sent shockwaves through global markets.”

“Market looking the turn of US Federal Reserve into its rate cut cycle from September which has lifted the outlook for global economic activity and crude demands. But the economic worries in the US and China overshadow supply risks that make prices bearish yesterday, Thursday,” Romero added.

Results of Friday’s trading will determine the final adjustments to be implemented on September 3, 2024. Where oil companies announce price adjustments every Monday, to be implemented on the following day.

In international trading LPG contract prices have gone up increasing by $50 per metric ton or around a P2 per kilo increase in the retail market. The increase is due to stockpiling activities of Asian and European countries in preparation for winter. The price hike in LPG in the Philippines to linger between P2.00-P3.50/kg or P22-P38.50 per 11kg tank, but prices may still change.

Source: ABS-CBN News 

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