Pump Prices Update: Diesel Hike and Gasoline Rollback Expected Next Week
Motorists in the Philippines should brace for mixed fuel price adjustments in the next week according to initial estimates from the Department of Energy While Diesel hike and Gasoline Rollback expected next week and fuel prices are expected to slightly roll back diesel and kerosene costs are projected to increase.
Expected Fuel Price Adjustments
Based on international oil trading trends in the last four days, the DOE-Oil Industry Management Bureau forecasts the following changes:
Gasoline: Rollback of around ₱0.05 per liter
Diesel: Increase of around ₱0.50 per liter
Kerosene: Increase of around ₱0.25 per liter
DOE Assistant Director Rodela Romero emphasized that these are projections only and do not yet include business costs and premiums that companies may factor in before final announcements.
Why Fuel Prices Changing?
Several reasons due to global events are driving the current fuel price volatility:
US Sanctions on Iran : The United States recently re-imposed sanctions on Iran that are aligning with the UN’s decision after Iran’s failure to comply with the 2015 nuclear deal.
OPEC+ Production Increase: The Oil producing nations under OPEC+ are preparing to raise crude output fueling concerns about a potential global supply glut.
Market Uncertainty Ahead of OPEC+ Meeting : The Traders are reacting sharply to global headlines ahead of the October 5 OPEC+ meeting which cause fluctuations in international fuel prices.
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Recent Fuel Price Movements in the Philippines
For context, last week’s adjustments (effective September 30) were as follows:
Gasoline: Rollback of ₱0.20 per liter
Diesel: Hike of ₱0.90 per liter
Kerosene: Hike of ₱0.90 per liter
Fuel firms are expected to announce the official adjustments this coming Monday, with the new rates effective Tuesday next week.
International Oil Prices and Their Impact on Pakistan fuel prices
Like the Philippines, international fuel price impact on Pakistan petrol and diesel prices are also heavily tied to global oil markets. When international crude prices rise due to supply shortages, sanctions, or OPEC+ policies, Pakistan faces immediate impacts because it relies on imports.
Key factors which influence Pakistan petrol prices :
Global Crude Price Shifts: The Increases in international oil prices directly push up local pump prices.
Exchange Rate Volatility: The Pakistani Rupee weakness or strength against the dollar which significantly affects fuel costs since the oil is traded in dollars.
Government Taxes and Levies: The Petroleum Levies and taxes like General Sales Tax in Pakistan amplify the final price consumers pay.
For instance when OPEC+ raises the production or sanctions disrupt global supply due to this Pakistan often sees petrol and diesel price hikes in the same cycle that affects countries like the Philippines.
Conclusion
Motorists in the Philippines should prepare for diesel price increase and a minor Diesel hike and Gasoline Rollback expected next week which reflect the ongoing volatility in the global oil market. With OPEC+ decisions, US sanctions, and supply demand concerns shaping international crude oil prices, these movements not only impact the Philippines but also directly influence petrol prices in Pakistan and other oil-importing nations. The final announcements will be made by oil firms on Monday, with new rates implemented by Tuesday.