The various fuel retailers have increased the price of petroleum products Monday, reversing last week’s brief rollback. Seaoil and Caltex raised gasoline prices by P1.15 per liter, diesel by P1.10, and kerosene by P0.80. PTT and Jetti also adjusted their gasoline prices upwards by P1.15 per liter and diesel by P1.10.
The latest price hike comes amid heightened global tensions, particularly between Russia and Ukraine, which have significantly impacted oil prices. According to data from the Department of Energy (DOE), the price per liter of gasoline (RON91) in Manila stood at P55.85 as of November 19, with diesel at P54.30 and kerosene at P71.35. Year-to-date adjustments show increases of P10.15 per liter for gasoline, P9.40 per liter for diesel, and P1.20 per liter for kerosene.
The surge in global fuel prices was driven by Russia’s intensifying offensive against Ukraine, which pushed Brent crude futures up by 1.3 percent, settling at USD75.17 per barrel, while US West Texas Intermediate crude increased by 1.6 percent, closing at USD71.24 per barrel last week. Reuters reported that the escalation in the Russia-Ukraine conflict, and with new US sanctions on Russia’s Gazprombank, has created uncertainty in global energy markets. Despite Moscow’s defiance, claiming the sanctions were aimed at restricting Russian gas exports, analysts suggest that the geopolitical tensions are contributing to price hikes.
Additionally, reports from China and India have added upward pressure on global oil prices. China, the world’s largest oil importer, announced measures to boost trade activities, including increasing energy product imports, while India, the third-largest importer, has ramped up its oil purchases in response to higher domestic demand.
Despite the price hikes, analysts noted that the strong performance of the US dollar has somewhat tempered the increase. A stronger dollar typically makes oil more expensive in other currencies, which helps to dampen global demand.
With fuel prices continuing to rise, motorists and businesses alike are bracing for further adjustments as the global oil market remains volatile.
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