Pump prices are expected to go up on Tuesday, according to the Department of Energy.

According to the DOE the price increase was due to the reported decision of Russia to cut their production of crude oil.

“Itong mga bansang nasa Europe, eh mapipilitang kumuha sa ibang other sources kung magkakaroon ng pagtaas ng demand sa produkto and then wala naman pangyayari na madagdagan ang supply, so tataas ang presyo,” DOE Oil Industry Management Bureau Assistant Director Rodela Romero said.

(The European countries will now be forced to look for other sources if there will be an increase demand in the product and then the supply will not increase so the prices will go up)

Industry sources said that price for diesel and gasoline will slightly increase on Tuesday.

Diesel is seen to go up by P0.70 to P0.90 per liter, while gasoline may go up by P0.50 to P0.70 per liter.

Kerosene on the other hand, will either have no movement or have a P0.15 per liter price reduction.

Earlier, the International Energy Agency was quoted as predicting that the world oil demand will increase by two million barrels per day for 2023.

China is expected to increase their demand for oil as well, with the lifting of their zero COVID-19 policy.

Meanwhile the DOE is waiting for the United States’ interest rate decision which can affect fuel prices.

“Patapos na yung taglamig pero ngayon may lingering factors… Kapag nagtaas ang interest rate ng mga malalaking bansa ibig sabihin nag-slowdown economic activity nila tapos naka-cut yung fuel demand,” Romero said.

(Winter is almost over but there are lingering factors. If the interest rates increases, the developed countries will have a slowdown in their economic activity thus resulting in the cut for fuel demand)

CurrentPH News Service