Refinery demand, tensions lift oil prices

Motorists brace for another hefty blow at the pumps this week, with fuel prices climbing for a second straight week amid surging global demand and heightened geopolitical risks.

Effective tomorrow morning, fuel retailers will increase pump prices by P1.70 per liter for gasoline, P2.70 per liter for diesel, and P2.10 per liter for kerosene.

According to the Department of Energy (DOE), the price hike reflects developments in the global oil market, particularly stronger refinery demand and renewed geopolitical tensions.

“Stronger refinery demand contributed to a counter-seasonal US crude oil inventory draw,” said Rodela Romero, Director at the DOE’s Oil Industry Management Bureau. 

“Oil also soared on prospects of new US sanctions against Russian oil companies Rosneft and Lukoil, as announced by President Trump. Unresolved issues between Russia and Ukraine continue to heighten geopolitical risks,” she added.

The latest upward adjustment comes on the heels of last week’s increase of P1.20 per liter for gasoline, P2 per liter for diesel, and P1.70 per liter for kerosene, further straining motorists and transport operators already dealing with higher operating costs.