Holiday countdown starts with higher fuel costs

National

By Patricia Andrea Pateña-Matheu

AS THE “ber months” roll in, so do higher fuel costs, with motorists facing another round of pump price hikes in the first week of September.

Industry projections indicate that gasoline could rise by P0.40 to P0.60 per liter, diesel by P0.80 to P1 per liter, and kerosene by about P0.50 per liter. These estimates reflect international market movements recorded over the past four trading days.

According to a Philstar report, the Department of Energy (DOE) said the looming increases are tied to a “larger-than-expected” decline in US oil inventories and the possible repercussions of newly imposed US tariffs on India.

DOE-Oil Industry Management Bureau assistant director Rodela Romero added that traders were also closely monitoring diplomatic developments involving the United States, Ukraine, and Russia.

Jetti Petroleum president Leo Bellas said the war in Ukraine continues to fuel concerns over supply disruptions. He explained that market optimism was further supported by signals of a possible interest rate cut from the US Federal Reserve as well as the sharp drawdown in US crude and fuel stocks.

“However, expectations that US demand could drop after the coming end of the summer driving season are tempering further price gains,” Bellas said in the report.

The final adjustments will hinge on the results of Friday’s trading, with official price changes to be announced Monday and implemented the following day.

Last week, oil firms raised pump prices by P0.70 per liter for gasoline, P0.50 for diesel, and P0.30 for kerosene.(MyTVCebu)