Over the weekend, we were already expecting an oil price increase for both diesel and gasoline. Now that the official price adjustments are in, it turns out it's much higher than expected.
By Tuesday, June 7, diesel will increase by PHP 6.55 per liter. Kerosene is up by PHP 5.45 per liter, while gasoline gets a PHP 2.70 per liter price hike. So far, Shell is the first to announce its price adjustment, which will be effective by 6:00 AM tomorrow. We expect other oil players in the country to follow later on.
Market premiums have increased last week following the banning of Russian oil in the EU, further tightening oil supply issues worldwide. And according to Reuters, Saudi Arabia already hiked its official selling price to Asia which is its primary market in July despite OPEC+ countries agreeing to accelerate their outputs for the next months.
Meanwhile, demand for oil is set to increase further in the coming months. The United States' peak driving season is approaching while China is easing up its pandemic restrictions.
With this latest price advisory, some areas in the country could see fuel prices breach the three-digit mark tomorrow. As much as we hate to say it, there's not much we can do but maximize the price discounts on select filling stations if we can, and fuel up before the big-time price increase becomes in effect.