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MANILA, Philippines—Gasoline and diesel prices are expected to rise this week after three straight weeks of price rollbacks since the start of the year as demand seems to have finally caught up with supply, according to oil industry sources.
The estimated price hikes would range from 55 centavos to 60 centavos per liter for diesel and 40 to 45 centavos per liter for gasoline products effective as early as today, sources said on Monday
Reports of last week’s international crude trades said there were positive sessions especially toward the weekend as demand for refined oil products recovered in the US, among the world’s top crude oil consumers. As of Jan. 24, the US reported a sharp drop in distillate (heating oil and diesel) supplies.
Oil prices were also supported by a surging dollar, which helps drive up the value of commodities in general. A stronger dollar makes oil less affordable for holders of other currencies, such as the peso.
Toward the end of last week’s oil trading period, analysts noted “positive” housing data and on-target industrial output forecasts.
Analysts have also said the market looks set to continue going higher as the oil industry seems to be “doing well.”
As of last week, while weak demand for refined petroleum products persisted in the international market, the year-to-date decrease was P1.45/L for diesel and P0.85/L for gasoline.
The first round of price cuts was implemented on Jan. 7, with kerosene prices sliding by 25 centavos per liter and diesel prices by.45 centavos per liter. At the time, when diesel stockpiles were high and US weather seemed too cold for venturing outdoors to drive gasoline sales, the winter market for fuel weakened.
Another round of price drops was implemented on Jan. 13, with diesel prices cut by 90 centavos per liter, gasoline by 85 centavos/liter, and kerosene by P1.10/liter amid persistently weak fuel demand.