Filipino motorists will again have to shell out a higher budget for their fuel consumption next week as prices are expected to rise at the pumps.
Oil companies said diesel products could increase from 0.55 P to 0.65 P per liter; while gasoline prices by a marginal upward adjustment from P0.10 to P0.20 per liter.
With the resumption of air travel in countries making progress with their Covid-19 vaccination programs, the price of kerosene products, which is the basis of aviation fuel, also appears to be on a continuing uptrend.
Based on estimates from local oil companies, kerosene will increase by 0.60 to 0.70 P per liter in their pump price adjustments scheduled for Tuesday, June 8.
On movements in oil prices since the start of the year, a Department of Energy (DOE) monitoring report showed gasoline prices again saw a net increase of P9.30 per liter ; diesel had been 7.60 aggregate P per liter higher; and kerosene still had an increase of 6.10 P per liter.
According to experts, the relentless rise in oil prices is mainly due to improving economic data in key economies like the United States, China and European jurisdictions.
The lifting of movement restrictions in widely vaccinated countries has also resulted in the return of summer travel for their citizens, resulting in increased demand for fuel, primarily in the United States and Europe.
But in Asia, demand had been reduced as more countries recently reported an increase in Covid-19 infections; and such a development is the reverse of previous projections suggesting that this region would pave the way for post-Covid global economic recovery.
As demand increases, the Organization of the Petroleum Exporting Countries (OPEC) and its Russian-led producer allies have indicated that they are ready to send more crude to the market to boost supply.
At this point, however, global producers estimated that demand growth forecasts for 2021 had remained largely unchanged at 6.0 million barrels per day.
SUBSCRIBE TO THE DAILY NEWSLETTER
CLICK HERE TO SIGN UP