Fuel prices fluctuate amid global market shifts

The prices of fuel sold at local pumps are displaying mixed movements in response to geopolitical and market factors, with both rollbacks and increases influenced by recent developments.

In separate advisories on Monday, local companies confirmed that gasoline prices are set to increase by P0.90 per liter, while diesel and kerosene prices are set to decline by P0.20 per liter and P0.40 per liter, respectively. The price adjustments will be effective tomorrow morning.

According to Rodela Romero, director of the Department of Energy's Oil Management Bureau, oil prices are moving in mixed directions due to various global factors.

Crude prices have eased following a U.S.-brokered ceasefire between Israel and Hezbollah, which raised hopes for regional peace and reduced concerns about supply disruptions. Weaker oil demand from China, one of the world’s largest consumers, is also keeping prices down.

However, she noted that prices are under upward pressure as OPEC+ is expected to extend production cuts, with a gradual easing starting in April 2025. In the U.S., an unexpected drop in crude inventories has also boosted prices.

Last week, oil companies raised prices by P1.15 per liter for gasoline, P1.10 per liter for diesel, and P0.80 per liter for kerosene.

Since the start of the year, gasoline and diesel prices have increased by a net P10.45 and P9.75 per liter, respectively, while kerosene has seen a net decrease of P1.50 per liter.