Diesel and kerosene surge in price on Tuesday – Manila Bulletin

The halcyon days are over as a new wave of oil price hikes loom again with petroleum product price hikes expected next week, with diesel and kerosene prices seeing larger increases, based on initial calculations by oil companies.

According to industry players, the price of diesel will increase from P2.45 to P2.65 per litre; while petrol prices will see a lower price increase of P0.40 to P0.60 per litre.

At the same time, the price of kerosene, which is a beneficial commodity for key industries such as the aviation sector, will rise from P2.60 to P2.80 per litre.

Oil companies will implement their upward price adjustments on Tuesday August 23 and it will be benchmarked primarily on cost movements anchored on the Mean of Platts Singapore (MOPS), the price index adopted by domestic oil players. deregulated oil industry.

The seven-week downward trend in domestic pump prices may have temporarily boosted the daily earnings of public utility vehicle (LCV) drivers, but the time has come for them to face another bout of rising prices. prices that could further exacerbate their financial dilemmas.

Ahead of price hikes expected next week, a Department of Energy (DOE) monitoring report showed that year-to-date cost adjustments still resulted in net increases of 29.10 pesos per liter of diesel ; P24.30 per liter for kerosene; and 17.45 pula per liter for gasoline products.

Global experts noted that prices have resumed their upward trend as fears of an economic recession have not entirely hampered the trajectory of demand – and this despite weaker economic data which had been released recently by China, one of the largest oil consumers in the world.

International oil prices temporarily dipped during the first days of trading last week, but lingering concerns over tight supply prompted benchmark Brent crude to recover to the $96 a barrel level from Friday August 19. .

The Organization of the Petroleum Exporting Countries (OPEC), in particular, blamed insufficient investment as a major factor that had kept oil prices at a relatively high level – this was due to persistent supply problems as a difficult situation for markets.

The other major geopolitical factor that affected price fundamentals in the global oil market last week was news of an upcoming nuclear deal with Iran; because lifting its sanctions could ensure that more oil is pumped into the markets. ###

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