By Myrna Velasco
The pump prices of gasoline products are expected to increase by P1.30 to 1.50 per liter while diesel products are expected to increase by P0.70 to P0.80 per liter this week.
This is based on the outcome of the four-day trading of fuel commodities in the world market last week. The actual price adjustments may still change, depending on Friday’s (September 13) trading results.
Oil companies are expected to increase prices at their retail pumps on Tuesday (September 17) – as anchored on cost movements in the global market and the fluctuation in the Philippine peso-US dollar exchange rate.
Another moving factor in the pricing are competitive forces – meaning, if there are players that will implement lower price hikes, then the other oil companies may just be compelled to match such increases.
Oil prices had been swinging in the past weeks that after a series of price rollbacks in the past three weeks, the reverse is expected in the days ahead.
Geopolitical forces, along with inclement weather in the Caribbean and some parts of the United States, have affected the dynamics of oil prices in the past weeks, according to market watchers and analysts.
The market will already be preparing for the next season – leading to winter in the next two months, which traditionally affects supply-demand fundamentals.
In recent years though, even high-demand months during winter season had no longer been exerting that much pressure on world oil demand as well as prices – with the market already having more free rein on trading results on a weekly basis.