Oil prices are projected to increase next week, driven by the United States’ tax changes and ongoing geopolitical tensions with Russia, according to the Department of Energy (DOE) on Friday, Aug. 22. Assistant Director Rodela Romero of the DOE Oil Industry Management Bureau indicated that the following price adjustments may occur based on four days of trade monitoring:
- Gasoline: P0.50 per liter
- Diesel: P0.40 per liter
- Kerosene: P0.10 per liter
Romero mentioned that these increases could rise further depending on the final trading day.
She attributed the rising oil prices to a recent decrease in U.S. taxes, stating, “Yung pagbaba ng tax ng United States for the week ending on Aug. 15 na sinasabi po nila, mataas yung kanilang refinery demand.”
Additionally, the geopolitical tensions between the U.S. and Russia are contributing to the price hikes, particularly after Presidents Donald Trump and Vladimir Putin failed to reach a peace agreement during the Alaska summit. Romero highlighted that Russia, being the third-largest oil supplier, makes oil prices sensitive to its political developments.