Mixed movement in fuel prices seen in first week of June

Metro Manila, Philippines - Motorists may see another round of mixed movement in fuel prices in the first week of June, the Department of Energy (DOE) said Friday, May 30.

In its forecast, the DOE said the price of gasoline may not change or have a possible hike of P0.40 per liter.

Diesel prices are expected either to decrease by P0.20 per liter or increase by P0.30.

Kerosene costs may be unchanged or will rollback by P0.10.

The DOE said possible increases next week may be attributed to the potential new sanctions of the United States on Russia, which “overshadowed” the anticipated production hike by Organization of the Petroleum Exporting Countries and other other oil-producing countries.

Easing tariff concerns between the US and European Union and rising geopolitical tensions in oil-producing countries could also push prices upward.

Meanwhile, the DOE said reasons for a possible decrease were the decision of the OPEC+ to increase production in July, and reduced demand forecasts amid the economic slowdown in Asia and shifting energy priorities of some nations.

With this week’s price movement, year-to-date for gasoline price is now a net increase of P4.10 per liter, diesel a net increase of P3.60 per liter, and kerosene a net decline of P2.45 per liter.