Motorists will have to prepare for larger increases in gasoline prices next week from P 1.90 to 2.00 per liter, according to calculations by oil companies.
For diesel products, the expected price increase will be in the range of P1.35 to P1.45 per liter while kerosene products are expected to increase from P1.30 to P1.40 per liter.
It is already the third week of this month that massive price hikes have been implemented for petroleum products retailed at the pump. Overall increases now hover around 2.75 P per liter for gasoline; 3.55 P per liter for diesel; and P3.50 per liter for kerosene products.
Oil companies will implement the new round of price hikes on Tuesday, October 19. The price increases are based on the Mean of Platts Singapore (MOPS), which is the benchmark price of the deregulated industry for its weekly cost adjustment routine.
As experts have noted, price spikes could still reign in oil markets in the days and months to come, as benchmark Brent crude already hit US $ 85 a barrel last week – and it closed at $ 84.86 on Friday October 15.
Industry watchers have pointed out that the astronomical rise in gas prices has prompted a shift to higher oil use, which has put additional pressure on available supply.
Based on forecasts from the International Energy Agency’s (IEA) global think tank, demand for oil could increase by up to 500,000 barrels per day due to the global energy crisis that triggered the ‘switching gas-oil âin many markets.
It was further reported that the surge in oil demand in Asia is also returning following higher Covid-19 vaccination rates in many countries in the region, leading to wider economic reopening in those jurisdictions.
In the Philippines, the public transport industry is now lobbying the government to allow public service jeepneys (PUJs) to increase the minimum fare from P3.00 to P22.00, while it is currently P9. 00.
The relentless rise in oil prices presents itself as another financial dilemma for many Filipinos, especially as many workers will soon be returning to their “physical workplaces” as restrictions on movement in the capital ease. .
Beyond its impact on the pockets of commuters, high oil prices will also have a ripple effect on commodity prices as the manufacturing sector uses oil in production as well as in the transportation of goods.
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