After an oil price rollback during the first week of the year, motorists; should brace for oil price hike in the second week of January 2025.
Projected Price Increases
Based on the international trading in the last four days, the following price hikes are anticipated:
- Gasoline: An increase of ₱0.40 to ₱0.70 per liter
- Diesel: An increase of ₱0.75 to ₱1.00 per liter
- Kerosene: An increase of ₱0.70 to ₱0.80 per liter
Factors Behind the Price Movement
According to Rodela Romero, Assistant Director of the Department of Energy’s (DOE) Oil Industry Management Bureau, some of the main reasons for the changes in prices are as follows:
OPEC+ production cuts: extension of production cuts by OPEC+ until April 2025 will further tighten supply.
Increased demand for heating fuels: bigger demand is pushing up the price as winter sets in in the United States and Europe.
Geopolitical risks and trade tensions: current global uncertainties are at work, adding volatility to the market.
Oil companies will likely announce their respective official price adjustments on January 6, which is Monday. It is expected that new rates will be implemented on January 7, 2025, which is Tuesday.
Motorists are advised to plan their fuel purchases accordingly and keep an eye out for further announcements from DOE and oil companies.
