Fuel companies to jack up pump prices further

MANILA: Local fuel companies will jack up pump prices tomorrow. 

Brands such as Cleanfuel, Unioil, Shell, Petron, and Caltex will increase the cost of gasoline by P1.65 per liter, diesel by P2.70 per liter, and kerosene by P2.50 per liter. 

The adjustments will take place tomorrow. 

To recall, local players made the following price hikes on their products at the pump

• P0.80 per liter on gasoline
• P0.90 per liter on diesel
• P0.80 per liter on kerosene 

Global price movement

The increase in the price of gasoline, diesel, and kerosene could have been spurred by the global price movement.

According to the Department of Energy (DOE), the week-on-week price of Dubai crude increased by approximately $6.23 (around P365.04) per barrel.

Likewise, the international prices of gasoline, diesel, and kerosene also increased by some $3.05 (P178.71), USD5.61 (P328.72), and USD5.45 (P319.34) per barrel.

Reasons for price increase

Per DOE, the pump prices increased due to various factors. Below are some of the following reasons:

• Seasonal winter demand strength
• Risk of United States sanctions on Russia
• “Softened” Asian gasoline market
• Higher domestic demand amid Lunar Year holidays
• China to prioritize jet fuel/kerosene exports
• Asian low sulfur fuel oil market seen taking a dip

In summary, here are the changes that took place in the local and global oil markets:

Local oil price	Global oil price
Increase P1.65 per liter (gasoline)	Increase P178.71 per barrel (gasoline)
Increase P2.70 per liter (diesel)	Increase P328.72 per barrel (diesel)
Increase P2.50 per liter (kerosene)	Increase P319.34 per barrel (kerosene)

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