Oil volatility pushes pump prices upward

Motorists will face higher fuel costs starting tomorrow, with gasoline and kerosene up P0.70 per liter and diesel rising by P1, as global supply jitters and geopolitical tensions keep oil markets on edge.

DOE Oil Industry Management Bureau Assistant Director Rodela Romero said the hikes reflect a sharper-than-expected decline in US oil and fuel inventories, as well as possible spillover effects of new US tariffs on India. She added that traders are also closely watching the US-Ukraine-Russia diplomatic moves.

Jetti Petroleum Inc. President Leo Bellas noted that crude and refined oil prices rebounded this week on fears of further supply disruptions after Russian and Ukrainian strikes on energy facilities. 

“Demand optimism further supported prices following signals from the US Federal Reserve of a possible interest rate cut, and a large drawdown in US crude and fuel inventories,” Bellas said.

He added, however, that weaker US demand as the summer driving season ends and an OPEC+ output hike in September could slow the rally.

Last week, fuel retailers raised gasoline prices by P0.70 per liter, diesel by P0.50, and kerosene by P0.30.