Daily TribuneEffective today, gasoline prices will increase by P1.90 per liter, diesel by P1.20 per liter, and kerosene by P1 per liter, as a result of global market volatility and concerns over US-imposed sanctions on Russian and Iranian oil.
Fuel prices are set to rise again this week, with oil firms implementing hikes starting Tuesday morning amid global supply concerns and renewed optimism over international trade.
Effective 5 August, gasoline prices will increase by P1.90 per liter, diesel by P1.20 per liter, and kerosene by P1 per liter, according to separate advisories issued by oil firms on Monday.
Global market volatility
The Department of Energy (DoE) attributed the latest price hikes to global market volatility, citing supply disruption risks and improving demand prospects following the recent trade agreement between the United States (US) and the European Union (EU).
DoE Oil Industry Management Bureau director Rodela Romero also cited concerns over fresh sanctions imposed by the US on Russian and Iranian oil as contributing to the uptick in prices.
Tightening world supply
Jetti Petroleum Inc. president Leo Bellas, on the other hand, said diesel prices continue to rise week-on-week amid tightening global supply, while a sharper-than-expected decline in US gasoline stocks has supported expectations of strong summer driving demand.
“The oil markets responded positively following the trade deal between the US and EU, while the threat of US sanctions on Russia and buyers of Russian oil has also helped support oil prices this week,” Bellas said.
He also noted that the depreciation of the peso against the US dollar contributed to higher domestic price averages.
Tariff risks
However, Bellas flagged some downward pressure on crude, citing tariff risks, unresolved trade talks with other economies, and delays in US Federal Reserve interest rate cuts.
Last week, fuel retailers raised pump prices of diesel by P0.60 per liter and kerosene by P0.40 per liter, while cutting gasoline prices by P0.10 per liter.
