GASOLINE and diesel prices are expected to increase on Tuesday, Feb. 21.
The Department of Energy (DOE) said the possible price adjustment was due to reports that Russia would cut the production of crude oil.
“Itong mga bansang nasa Europe mapipilitang kumuha sa ibang other sources kung magkakaroon ng pagtaas ng demand sa produkto and then wala naman pangyayari na madagdagan ang supply, so tataas ang presyo,” said DOE Oil Industry Management Bureau assistant director Rodela Romero.
An oil industry source expects prices of diesel to be hiked by P0.60 to P0.85 per liter and gasoline by between P0.40 to P0.65 per liter.
According to the International Energy Agency, world oil demand is expected to increase by two million barrels per day this year.
China is among the countries expected to increase demand due to the lifting of their zero COVID-19 policy.
The DOE said fuel prices usually decrease in the first six months of a year.
The latest data available from the DOE show that year-to-date net decreases stand at P2.15 per liter for diesel and P0.25 per liter for kerosene, while gasoline remains at a net increase of P5.10 per liter.
The department also said it was waiting for the United States’ interest rate decision which can affect fuel prices.
“Patapos na ‘yung taglamig pero ngayon may lingering factors… Kapag nagtaas ang interest rate ng mga malalaking bansa ibig sabihin nag-slowdown economic activity nila tapos naka-cut ‘yung fuel demand,” Romero said. (GMA Integrated News)
