By Myrna M. Velasco
Oil prices are expected to go up again this week.
Based on initial calculation, gasoline prices will go up by P0.75 to R0.80 per liter while diesel will increase by P0.40 to P0.50 per liter.
Also going up is kerosene, a vital commodity for rural Filipino households as well as industries like aviation, by P0.55 to P0.60 per liter.
Department of Energy Assistant Director Rodela I. Romero said that “it will be another uptrend in pump prices next week,” mainly due to escalating prices in the world market last week plus the impact of the P0.09 devaluation of the Philippine peso vis-à-vis the US dollar.
Romero said other factors igniting rallies in oil prices have been refinery shutdown turnarounds in many parts of Asia, the impact of the revived sanctions against Iran, and the constantly sliding production of Venezuela, one of the oil-producing members of the Organization of the Petroleum Exporting Countries.
“From what we’ve assessed as of last Friday trading, there will be another round of price hikes, but it will not be as big as the P1.60 per liter that we’ve had last week – it will be less than R1 per liter next week,” she said.
The DoE emphasized that price upswings are also triggered by the biofuels component (ethanol and bodiesel) in petroleum products and taxes, primarily Value-Added Tax which adjusts depending on the level of uptrend or reduction in pump prices.
