The various fuel retailers are implementing price adjustments on petroleum products beginning Tuesday, continuing the trend of fluctuating costs amid global uncertainty. Seaoil and Caltex raised their gasoline price by P0.90 per liter, while reducing diesel by P0.20 and kerosene by P0.40. Clean Fuel and Jetti also increased their gasoline by P0.90 per liter but cut diesel by P0.20.
These changes come amid ongoing geopolitical tensions in the Middle East and growing anticipation for this week’s Organization of the Petroleum Exporting Countries (OPEC) meeting. Industry experts are closely monitoring both factors, which are expected to influence future price movements.
According to the Department of Energy (DOE), fuel prices in Metro Manila as of 28 November average P57 per liter for gasoline (RON91), P57.60 for diesel, and P72.15 for kerosene. Year-to-date adjustments show a net increase of P10.45 per liter for gasoline and P9.75 for diesel, while kerosene has dropped by P1.50 per liter.
Oil prices have been volatile, largely driven by the Middle East conflict. Reuters reported that as of last Friday, Brent crude averaged $72.94 per barrel while U.S. West Texas Intermediate crude sold for $68 per barrel. A temporary ceasefire between Israel and Hezbollah, which began on 29 November, helped ease oil’s risk premium, contributing to some price reductions despite ongoing regional tensions.
While the conflict has not disrupted global oil supply, analysts are anticipating a surplus of over 1 million barrels per day in 2024, according to the International Energy Agency. This excess supply is creating a cautious market ahead of OPEC’s 5 December meeting where the group will decide whether to extend its production cuts.
As the situation continues to evolve, fuel consumers should brace for further price changes depending on the outcome of OPEC’s decision and any developments in the Middle East.
