Fuel prices seen shifting after Christmas

Fuel prices are expected to move in mixed directions next week following the Christmas rollbacks, the Department of Energy (DoE) said.

Gasoline could drop by around P0.50 per liter, diesel is expected to stay steady, and kerosene may inch up by P0.10 per liter, according to Rodela Romero, DoE-Oil Industry Management Bureau director.

Estimates do not include fuel firms’ operating costs

The estimates, which will be finalized on Monday and implemented the next day, do not include oil companies’ operating costs or other premiums.

“The mixed or slightly downward pressure is attributed to the global oversupply coming from non-OPEC economies like the US, weak demand due to the winding down of holiday travels and seasonal industrial demand, and the uncertainty of the geopolitical tensions in Venezuela, Ukraine and Russia,” Romero said.

Meanwhile, Leo Bellas, president of Jetti Petroleum Inc., added that global oil prices are also being shaped by geopolitical tensions.

Diesel may rise by around P0.30 to P0.50 per liter next week, while gasoline could barely move, from P0.00 to P0.10.

Oil prices influenced by geopolitical developments

“Oil prices have been supported by geopolitical developments as the tougher US sanctions enforcement on Venezuela and intensified attacks by Ukraine on Russian oil infrastructures have raised the risk of supply disruptions,” Bellas said.

This week, gasoline prices went down by P0.80 per liter, diesel by P1.30 per liter, and kerosene by P1.60 per liter.