(Photo by Dexter Terante)
According to the Department of Energy's estimates, gasoline prices are likely to rise by P1.10 to P1.40 per liter, diesel by P1.70 to P1.90 per liter, and kerosene by P1.10 to P1.20 per liter next week.
DOE Oil Industry Management Bureau Director Rodela Romero stated that these estimates are based on four days of international trading.
Romero cited several contributing factors to the impending price hikes: the potential decrease in oil production in the Gulf of Mexico due to hurricane activity; the Organization of Petroleum Exporting Countries' (OPEC) plan to increase oil production in December; and the US Federal Reserve's plans to reduce interest rates.
The depreciation of the peso, the premium added to the purchase of petroleum products, and the cost of transportation also greatly contribute to the increase in the price of these products.
