Motorists should brace for higher fuel costs next week, as pump prices are set for another round of increases.
Based on the four-day Mean of Platts Singapore (MOPS), gasoline could rise P0.40 to P0.60 a liter, while diesel may increase by P0.80 to P1 a liter by the first week of September. Kerosene is also seen to spike by about P0.50 a liter next week.
A continued decline in United States (US) inventories and the effects of tariffs on India are seen as triggers for the price movements, according to the Department of Energy’s Oil Industry Management Bureau.
The weekly petroleum status report of the U.S. Energy Information Administration showed that recent crude oil inventories decreased to 418.3 million barrels, a 2.4 million drop from the previous week.
Demand optimism further supported prices after the U.S. Federal Reserve signaled a possible interest rate cut and a large drawdown in U.S. crude and fuel inventories.
Jetti Petroleum President Leo Bellas said that “expectations that U.S. demand could drop after the coming end of the summer driving season is tempering further price gains.”
Rodela Romero, director of the Oil Industry Management Bureau, said that “oil traders are watching for updates from U.S.-Ukraine-Russia’s diplomatic efforts.” (Gabriel Christel Galang)
