A sharp increase in oil prices will be felt within the week on the weight of recent dollar appreciation against the peso and global uncertainties.
In an interview, Director of Oil Industry Management Bureau Zenaida Monsada said if the tensions in the Middle East specifically in Syria persist, oil prices would likely remain on an uptrend.
Monsada noted that while there is enough oil supply, the economic growth in China and the United States is quite slow.
Another factor that could trigger more oil price hikes is supply destruction.
For this week alone, motorists will feel a more than one-peso increase in fuel prices. Monsada said the price of diesel would likely increase by more than a peso, while the price of gasoline could go up by P1.
For this year, oil companies have implemented more oil price hikes than rollbacks.
Monsada said the price of gasoline has already gone up by P7.40 this year, while diesel went up by P5.18.
In the previous week, Petron Corp., Pilipinas Shell Petroleum Corp., Chevron Corp., SEAOIL Philippines, Inc., Eastern Petroleum Corp., and Phoenix Petroleum Philippines, Inc. implemented an oil price increase of 50 centavos per liter on premium, unleaded, and regular gasoline, and a price cut of 15centavos per liter on kerosene.
Monsada added, however, that fuel prices in the country are at tolerable levels and the government has not talked about any fuel subsidy.