The Department of Energy (DOE) said that motorists should expect hefty increase in the prices of fuel starting Tuesday, May 20.
The agency's Oil Industry Management Bureau said that the price of gasoline may increase by P0.95 to P1.40 per liter; diesel by P1.50 to P2 per liter; and kerosene by P1.30 to P1.40 per liter.
Rodela Romero, assistant director of the DOE-Oil Industry Management Bureau, said that the looming price hike can be attributed to the agreement of US and China to reduce reciprocal tariffs on most imported goods on a 90-day period.
It is also due to the US imposing sanctions on several firms participating in Iran’s international oil trade, and expectations of the Organization of the Petroleum Exporting Countries on lower capital spending following a decline in oil prices and slower oil supply growth this year.
The price hike comes after oil firms cut the prices of fuel in the last two weeks of this month.
The official price adjustments will be announced on Monday and will be implemented on Tuesday.
