UP TO P2.70/LITER BIG TIME OIL PRICE HIKE SEEN NEXT WEEK

Oil prices are expected to increase again next week asimported fuels have spiked by more than P2 per liter (Photo courtesy of Adobe/TopGear)

For fourth straight week, oil prices are expected to increase big-time once again next week based on the first four days of trading on the world market according to Department of Energy (DOE).

DOE-Oil Industry Management Bureau Director Rodela Romero said that the international petroleum trading by mid-October were amid escalating tensions in the Middle East and the onslaught of Hurricane Milton in the US.

The estimated upward pump price adjustments is set to be implemented on Tuesday, October 15, 2024.

Gasoline – P2.00 to P2.30 per liter

Diesel -  P2.35 to 2.65 per liter

Kerosene – P2.45 to 2.55 per liter

The expected fuel price hike was attributed to “significant spike in crude oil prices due to fear of supply disruption should Israel’s retaliation target Iran’s oil infrastructure.” 

“There is also some tightening in supplies of diesel and gasoline in our region due to production cuts (ongoing refinery maintenance and refinery run cuts) and unplanned refinery outages in Indonesia and Malaysia. Overall, the increase is due to higher crude prices, which may stay elevated because of the Middle East tension,” Romero added.

Also, energy delivery services in the US were affected by Hurricane Milton, a Category 5 hurricane that devastated parts of Florida. Weaker demand from China have also affected oil prices.

On October 8, oil companies hiked the prices of diesel and kerosene by P1.20 per liter and P0.70 per liter, respectively, while no change was effected for gasoline. 

This brought the year-to-date adjustment for diesel to stand at a net increase of P4.05 per liter, while gasoline remains at P6.40 per liter. Kerosene has a year-to-date net decrease of P5.35 per liter.

Source: GMA Integrated News 

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