The Department of Energy (DOE) has announced that fuel prices are expected to experience mixed adjustments in the second week of October. While gasoline prices are projected to decrease, diesel and kerosene prices are expected to rise.
Gasoline Prices: A Welcome Dip
Gasoline prices are expected to decrease by P0.50 to P0.70 per liter. This downward trend can be attributed to a combination of factors:
- Increased US Stockpiles: US oil stockpiles rose more than expected last week, indicating a potential surplus in supply.
- Libya's Production Resumption: Libya's eastern administration ended a month-long production and export blockade, increasing oil supply to the global market.
- OPEC+ Production Increase: The Saudi-led OPEC+ oil cartel is set to raise production from December, further easing concerns about supply shortages.
Diesel and Kerosene: An Upward Trend
Diesel and kerosene prices are expected to increase, with diesel projected to rise by P0.40 to P0.70 per liter and kerosene by P0.15 to P0.35 per liter. This upward trend is likely influenced by:
- Global Oil Price Surge: Global oil prices surged due to fears of escalating conflict in the Middle East following Iran's missile attack on Israel.
- Winter Season Demand: The upcoming winter season in some countries is expected to increase demand for heating fuels, including diesel and kerosene.
A Balancing Act
The mixed adjustments in fuel prices highlight the complex interplay of global events and market dynamics. While increased oil supply and production promises to ease concerns about shortages, geopolitical tensions and seasonal demand continue to exert pressure on prices. It remains to be seen how these factors will ultimately shape fuel prices in the coming weeks and months.