Tighter supply conditions that persist partly due to US sanctions on some Russian oil producers are projected to increase domestic oil prices by as much as PHP1.50 per liter this week.
Citing price movements in the Asian benchmark, Mean of Platts Singapore (MOPS), and foreign exchange developments as of Thursday, Jetti Petroleum president Leo Bellas forecast diesel prices to increase by PHP1 to PHP1.20 per liter and gasoline by PHP1.30 to PHP1.50 per liter.
“Diesel and middle distillate prices stay supported on tighter fundamentals as supply remains capped due to refinery turnarounds, and with growing concerns that Western sanctions on Russian oil could further disrupt trade flows,” he said.
“Gasoline prices remain supported as well, amid expectations of tighter supply as firm regional demand continue to draw down inventories, and as exports from major regional producers have been declining on the back of refinery outages and planned turnarounds.”
He said further upside to prices is expected to be capped as supply tightness is seen to gradually ease as refineries return from the seasonal turnaround.
The projected upward adjustment next week would be the seventh for gasoline and fourth for diesel, after the PHP0.50 per liter hike for gasoline and PHP1 per liter for diesel this week.
Last week’s oil price hikes were, however, not in place in select areas greatly damaged by recent typhoons.
The prices of kerosene, along with other items considered as basic goods, have also been kept since Nov. 7 after Malacañang declared a state of national calamity due to the impact of recent disasters. (PNA)
