MOTORISTS will have to deal with higher fuel prices next week as the Department of Energy’s Oil Industry Management Bureau (DOE-OIMB) forecasts significant price hikes for gasoline, diesel, and kerosene.

Based on the latest data from the international oil market and foreign exchange trends, the DOE-OIMB projects that gasoline prices will increase by P0.35 to P0.70 per liter, while diesel could rise by P1.10 to P1.40 per liter.

Kerosene prices are expected to go up by P0.90 to P1.00 per liter.

Rodela Romero, Assistant Director at the DOE-OIMB, attributed the price increases to several global economic factors, including a stronger US dollar and a decline in US crude oil inventories.

Additionally, the recent 25 basis point reduction in the US Federal Reserve's benchmark interest rate has sparked optimism regarding economic growth and increased oil demand.

Industry experts also pointed to tighter sanctions on Russia and a reduction in fuel exports from China and South Korea as contributing factors to the rising prices.

These developments have caused supply concerns, particularly in Asia, where both gasoline and diesel supplies are already limited.

The final price adjustments, which will take effect next week, will be determined by oil companies’ trading activity and operating costs over the next few days.

DOE-OIMB noted that the official price hike announcement will be made on Monday, with the new prices taking effect the following day.

This week, oil companies implemented an increase of P0.80 per liter for gasoline and diesel, while kerosene prices rose by P0.10 per liter.(CMM)

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