Over P4/liter oil price hike looms next week

MANILA, Philippines — Pump prices are set to rise next week as hopes fade anew that the Strait of Hormuz will reopen soon.

Industry estimates point to a potential price increase of P3.75 to P4.25 per liter for diesel and P2.50 to P3 per liter for gasoline on Aug. 18.

The projections were based on the four-day average of the Mean of Platts Singapore and movements in foreign exchange rates. The final adjustment could still change with one trading day remaining.

“The continued decline of global product inventories due to refinery output disruptions is keeping markets tighter than crude,” a local industry source said.

However, recent signs of weaker global demand and rising US crude inventories are expected to weigh on oil prices, potentially limiting further gains.

Last Tuesday, oil firms rolled back gasoline, diesel and kerosene prices by at least P4.70, PP4.30 and P4.88 per liter, respectively.

The government currently has no control over fuel prices due to the Oil Deregulation Law, which fully liberalizes the country’s downstream oil industry.

The Department of Energy is working to establish a strategic petroleum reserve, with the proposal calling for a government-held buffer equivalent to 60 days of supply.