Fuel prices will change in different directions in the second week of December, the Department of Energy (DOE) announced on Friday.
According to Rodela Romero, Director of the DOE Oil Industry Management Bureau, gasoline prices will increase, while diesel and kerosene prices will decrease. The changes are as follows:
Gasoline: Increase of P0.10 to P0.30 per liter
Diesel: Decrease of P0.40 to P0.70 per liter
Kerosene: Decrease of P0.40 to P0.60 per liter
Romero explained that the price movements are driven by demand. “Gasoline demand is higher compared to diesel. While we mainly use diesel, larger countries rely more on gasoline,” she said in a TeleRadyo Serbisyo interview.
The ongoing conflict between Israel and Hezbollah, along with decisions by major oil-producing countries to extend supply cuts, also played a role in the price changes.
On Thursday, Saudi Arabia, Russia, and other OPEC+ countries agreed to extend their oil supply cuts for three more months, until March, in an effort to prevent a sharp decline in global oil prices.
However, the impact of these supply cuts has been limited. Analysts expect that U.S. president-elect Donald Trump will implement policies to increase U.S. oil production. Meanwhile, China’s demand for oil remains weak due to a struggling economy.
The International Energy Agency warned last month that even if OPEC+ continues its cuts, global oil supply will still exceed demand by over one million barrels per day next year.
Currently, OPEC+ nations are withholding six million barrels of oil per day, including the 2.2 million barrels that were previously discussed for release back into the market.
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