Fuel prices may surge by over P1 per liter next week

Next week, motorists in the Philippines should expect an uptick in oil prices, with estimates suggesting a rise of approximately P1.10 to P1.50 per liter for gasoline, diesel, and kerosene. This projection comes from Rodela Romero, the assistant director of the Department of Energy’s Oil Industry Management Bureau.

Romero attributes this expected price hike to several factors, including heightened tensions in the Middle East, particularly at the Lebanese border. Recent developments indicate escalating conflict between Israel and Hezbollah in Lebanon, prompting concerns and reactions that have impacted oil prices. Additionally, disruptions in shipping routes, notably in the Red Sea and the Suez Canal, have contributed to the increase in fuel prices.

Furthermore, Romero points to a surge in US crude stockpiles as a factor influencing the rise in pump prices. These various geopolitical and logistical challenges have collectively contributed to the forecasted increase in oil prices.

Moreover, the Organization of Petroleum Exporting Countries (OPEC) has projected robust global demand for oil in 2024, expecting growth of approximately 2.2 million barrels per day. This anticipation of increased demand further supports the likelihood of higher oil prices in the near future.

Romero’s estimation of the price hike comes after observing a four-day trading period of the Mean of Platts Singapore, a benchmark for oil prices in the Asia-Pacific region.

News: Fuel prices may surge by over P1 per liter next week