Gasoline price increase inching close to P2.00/liter
AT A GLANCE
On the calculation of the industry players, gasoline prices will rise by P1.40 to P1.90 per liter, diesel to escalate by P1.20 to P1.60 per liter; and kerosene prices will go up by P1.20 to P1.60 per liter.
If based solely on price movements of the Mean of Platts Singapore (MOPS) index, the quantified price hikes from the outcome of four-day trading had been: P1.421 per liter for gasoline products; then P1.126 per liter for diesel; and kerosene products by P1.292 per liter.
Huge cash will be burned at the pumps next week, as oil products are anticipated to be on hefty price hikes again by Tuesday (February 20), according to the estimates of the oil companies.
On the calculation of the industry players, gasoline prices will rise by P1.40 to P1.90 per liter, while diesel prices will also escalate by P1.20 to P1.60 per liter.
Kerosene, which is the other commodity in the weekly price swings and an essential base for aviation fuel, will also tick up by P1.20 to P1.60 per liter.
If based solely on price movements of the Mean of Platts Singapore (MOPS) index, the quantified price hikes from the outcome of four-day trading had been: P1.421 per liter for gasoline products; then P1.126 per liter for diesel; and kerosene products by P1.292 per liter.
The final price adjustments will be reckoned after end-week trading on Friday (February 16), but the oil firms indicated that the scenario of elevated prices cannot be reversed anymore.
As the global price compass swung above $82 per barrel in recent days for international benchmark Brent crude, last week’s marginal rollback completely took a reverse turn.
Industry experts noted that the new surge in prices can still be attributed to the raging war in the Middle East with the uncertainties getting more complicated following an impasse on an earlier ceasefire plan between the Israeli and Palestine forces – and the aggravating factor to that is the Red Sea friction which has been whipping up risk premium for oil commodities to stride above $3.00 per barrel.
Beyond geopolitical events soaring to boiling points, the other factors which precipitated soar in prices had been forecast of trimmed production growth in non-OPEC countries, primarily in Russia and the United States; while the Organization of the Petroleum Exporting Countries (OPEC) had kept demand growth projection unchanged for 2024-2025.
Saudi Arabia, which is the world’s biggest oil producer, similarly indicated plans to curb output to 12 million barrels per day level, as it is opting for higher capital infusion to renewables as part of its energy transition investment trajectory.
As emphasized by industry watchers, these global energy development ripples had dominated market sentiments last week; that even the higher-than-expected inflation figures in the US as well as reports of its inventory buildup had not done much to tame spiral in prices.
