Small fuel price increase seen

MANILA, Philippines—After four weeks of decreasing fuel prices, stations are expected to jack up their prices again, most likely on Tuesday.

AP FILE PHOTO

Industry sources said the most recent price cuts for diesel and gasoline would likely be recovered through a price rebound this week.

“In the previous weeks there has been a 60 centavos per liter rollback for diesel. That’s the most likely hike, plus 10 centavos per liter for gasoline,” one industry source said.

Another source said diesel may likely increase by 40 to 60 centavos per liter and gasoline by 10 to 15 centavos per liter.

Sources said the price rebound was mainly due to the US  economy getting better and warmer weather putting more people on the roads. This affects crude prices with both real and speculative demand, sources said.

Other factors cited were supply concerns brought about by the escalating tension in Ukraine and Russia, as well as the weak peso which is making imports more expensive.

Year-to-date there has been a net decrease of 45 centavos per liter for gasoline and P1.10 per liter for diesel.

Despite the expected price rebound this week, some analysts are predicting there may be more downward trends in the near future.

A general lack of momentum in China’s economic expansion, analysts said, coupled with perceptions of oversupply in some markets such as the US, may keep prices in check.

Analysts cited a recent drop in the Chinese currency and falling metal (copper, iron ore) prices as indications of slower growth in China, which rivals the US as the largest oil consumer in the world.

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