Oil price hike looms next week

Consumers may face higher fuel costs next week due to a projected increase in domestic pump prices, reversing the rollback that welcomed the new year. 

Rodela Romero, director of the Oil Management Bureau of the Department of Energy, said expected adjustments based on four-day trading in the Mean of Platts Singapore are an increase of P0.40 to P0.70 per liter for gasoline, P0.75 to P1.00 per liter for diesel, and P0.70 to P0.80 per liter for kerosene. 

The possible price hike is set to take effect on Tuesday morning.  

Global trends weigh

Romero explained that the anticipated increases are being driven by several global factors. 

The Organization of the Petroleum Exporting Countries and its allies recently extended their 2.2 million barrels per day production cuts until April 2025, limiting supply in the market. 

Additionally, the United States and Europe are experiencing severe cold weather this January, which has led to heightened demand for heating fuels. 

Geopolitical tensions and trade uncertainties have also contributed to short-term oil price volatility, further impacting global market trends.