Local oil retailers implemented a big-time price hike to start the year after mixed price adjustments last week.
Seaoil and Caltex increased per liter prices by P2.90 on gasoline, P2.10 on diesel and P3.05 on kerosene.
Clean Fuel adjusted per liter prices upward by P2.90 on gasoline and P2.10 on diesel.
Today’s adjustments were mainly attributed to China’s announcement last week it will stop requiring inbound travellers to go into quarantine starting January 8 which could spark higher fuel demand in the country.
Department of Energy (DOE) data as of December 29 showed the average Manila price per liter of gasoline (RON95) is at P64.50, diesel at P68.14 and kerosene at P76.16.
DOE data as of December 28 showed adjustments of petroleum products in 2022 amounted to a net increase of P14.90 per liter for gasoline, P27.30 per liter for diesel and P21.30 per liter for kerosene.
Reuters reported that as of Friday last week, Brent crude settled at $85.91 a barrel while US West Texas intermediate crude ended at $80.26 per barrel.
The same report also cited analysts’ expectations that oil prices are set for small gains this year due to a worsening global economic backdrop and continued COVID-19 flare-ups in China which may threaten demand growth and offset the impact of supply shortfalls caused by sanctions on Russia.
The report said worldwide recession will be felt early this year due to the effects of high inflation and rising interest rates. Oil demand can significantly grow in the second half of 2023 with the easing of pandemic restrictions in China as well as central banks’ adoption of a less aggressive approach on interest rates. – Jed Macapagal
