DIESEL PRICE HIKE MAY HIT 4 PESOS PER LITER SAYS ENERGY’S ABAD

THE price increase for diesel fuel may go higher than projections and hit an additional P4 per liter by Tuesday, as Russia and Saudi Arabia continue to cut down on oil production, Energy Director Rino Abad said.

The Department of Energy had already confirmed Friday the projections that diesel will likely go up by P3.40 to P3.60 per liter, kerosene by P2.45 to P2.65 per liter, and gasoline by P0.15 to P0.35 per liter, based on the benchmark Mean of Platts Singapore trading and foreign exchange movement for the first four days of the week.

But Abad said China also delivered on its commitment to reduce oil production this month, as kerosene prices are also seen rising by P2.70 to P3 per liter, while gasoline will go up by P0.20 to P0.50 per liter.

This means diesel prices will have increased by around P10/ liter for the past five weeks, while gasoline prices have already risen by P5/liter for the same period.

However, Leo Bellas, president of Jetti Petroleum, doesn’t see oil prices rising as drastically as last year when diesel reached an all-