The Department of Energy confirmed on Friday that there will be a big oil price hike in domestic pump prices by as much as P2.65 per liter next week to reflect the volatility in world oil prices.
DOE director Rodela Romero said gasoline will go up by P2 to P2.30 per liter, diesel by P2.35 to P2.65 per liter and kerosene by P2.45 to P2.55 per liter.
Romero cited several reasons for the oil price increase such as the escalating conflict in the Middle East that threatens to disrupt oil exports with an increasing war premium; and the possible disruption of energy delivery due to Hurricane Milton.
“Final adjustments will be determined after the last trading day,” Romero said.
Jetti Petroleum president Leo Bellas earlier said there was a significant spike in crude oil prices due to fear of supply disruption should Israel’s retaliation target Iran’s oil infrastructure.
He said the strong US dollar versus the peso also pushed the increase in pump prices higher.
The oil companies move pump prices every Tuesday.
On Oct. 8,, the oil companies implemented an increase of P1.20 per liter for diesel and P0.70 per liter for kerosene while no movement was effected for gasoline.
Department of Energy data showed that year-to-date, total adjustment of diesel stands at a net increase of P4.05 per liter while gasoline remains at P6.40 per liter.
On the other hand, kerosene has a total net decrease of P5.35 per liter.
