MANILA, Philippines — Travelers planning their journeys during the upcoming Holy Week are advised to fill their tanks early as significant fuel price increases are set to take effect this Holy Tuesday. Several major oil companies in the Philippines, including Caltex, Cleanfuel, Jetti, Petro Gazz, PTT, Seaoil, and Shell, have announced considerable hikes in fuel prices, impacting gasoline, diesel, and kerosene.
According to Philippines News Agency, the announced adjustments will see gasoline prices rise by PHP2.20 per liter and diesel by PHP1.40 per liter. Additionally, Caltex, Seaoil, and Shell will increase kerosene prices by PHP1.30 per liter. These changes come in the wake of recent global oil market developments and are expected to influence other local oil firms to adjust their pricing similarly.
The DOE's latest data indicates that, year-to-date, there has been a net increase of PHP5.55 per liter for gasoline and PHP3.70 per liter for diesel, while kerosene prices have seen a slight net decrease. These fluctuations are attributed to the international oil market's dynamics, particularly following the U.S. Energy Information Agency's (EIA) revised global oil price forecasts.
The EIA adjusted its price projections upward after OPEC+ (Organization of the Petroleum Exporting Countries and its allies) decided to extend its production cuts through the second quarter of 2024. This decision has led to a reduction in expected global oil production, which, combined with steady demand, necessitates the use of existing petroleum inventories to meet needs.
For the second quarter of 2024, the EIA now anticipates global oil production to be around 101.3 million barrels per day, which is 900,000 barrels per day less than the forecasted demand. Such imbalances in the global oil market are direct contributors to the domestic fuel price adjustments travelers will face during one of the busiest travel periods in the Philippines.