Some oil companies will implement a big-time oil price increase on Tuesday, Jan. 24.
According to advisories from some oil companies, P2.25 will be the highest oil price for each liter of diesel tomorrow and almost P3.00 or P2.80 for each liter of gasoline.
The Department of Energy (DOE) said they expect a continuous decrease in the price of petroleum products due to the scheduled decrease in global demand in the first and second quarter of 2023.
However, there are three game changers in its price diving up again.
The primary reason is the reopening of China’s economy, the world’s largest consumer of petroleum, as well as the repurchase of strategic petroleum in the United States, and the reduction of European and American interest rates, which will stimulate economic activity and demand for petroleum products, according to DOE.
“Unfortunately, itong game changer na ito, ‘yung parang kumokontra doon sa trend. Kung wala sana itong tatlo, mukhang ang gut feeling ko talaga [is] first, second mukhang pababa sana ang price pero sa nangyayaring tatlong ‘to na reason, na mga reason eh talagang mukhang mas favorable ang environment para lumakas po ang demand at tumataas ng konti ang price,” DOE Director Atty. Rino Abad said.
Abad said 60% of Philippine oil is used for transportation and promoting the use of electric vehicles will help the nation.
“Kung mapapababa natin ‘yan into half, for example, 30% na ‘yun ay magta-transition to e-vehicle, hindi na masyado, hindi na masyado mae-expose sa volatility ng oil price,” Abad added.
Abad said he is expecting the oil price to increase again in the next few days. With a report from Karen Villanda/KC – gbÂ