Fuel prices up again as global supply tightens

Motorists will have to pay nearly P1 more per liter of fuel at local pumps this week, largely due to tightening global oil production, among other factors.

In separate advisories on Monday, local retailers announced a P0.80 per liter increase in both diesel and kerosene, while gasoline prices will rise by P0.90 per liter, effective Tuesday morning.

Rodela Romero, Director of the Department of Energy’s Oil Industry Management Bureau, explained that this second consecutive week of price hikes was driven by several global developments. Key among these is the reduction in oil output from the Organization of Petroleum Exporting Countries (OPEC) and Russia, which has tightened global supply.

Romero also pointed to a robust U.S. employment report, showing low layoffs and rising job openings, reflecting strong economic activity that has driven fuel demand. Additionally, China’s recent economic stimulus package is expected to boost regional oil consumption, further supporting price increases.

As of 7 January, oil companies had already implemented a P1 per liter increase in both gasoline and kerosene, while diesel prices had risen by P1.40 per liter.

Last year, gasoline and diesel saw total net increases of P12.75 per liter and P11.00 per liter, respectively, while kerosene experienced a net decrease of P2.70 per liter.