PRICES of all fuel products will increase, big-time, next week, oil industry sources said Friday.They said that the looming adjustments in the prices of oil products are due to new sanctions imposed on Russian crude.They said gasoline prices are seen to go up by P1.35 to P1.60 per liter, while diesel prices could spike by P2.30 to P2.60 per liter.Also, kerosene prices would go up by as much as P2.30 up to P2.50 per liter.These adjustments in the prices of oil products are based on the four-day trading of Mean of Platts Singapore, the pricing basis of refined goods in Southeast Asia.The Department of Energy's Oil Industry Management Bureau (DOE-OIMB) said that the reason for the big increases next week is due to global oil developments as the US and UK impose new sanctions on Russian oil.'All local fuel prices are expected to greatly go up next week as the US and UK have imposed a new round of sanctions on Russian oil. This, in turn, would result in a reduction of Russian exports, which could push global crude prices higher in the near term, as the market adjusts to the loss of supply from one of the world's largest oil producers. Likewise, there would be potential increases in shipping cost due to this development as well,' DOE-OIMB director Rodela Romero said.On Jan. 10, 2025, the US Department of the Treasury's Office of Foreign Assets Control (OFAC) and the UK's Office of Financial Sanctions Implementation (OFSI) announced new sanctions against two major Russian oil companies, PJSC Surgutneftegas and Gazprom Neft.The US and the UK have introduced new general licenses to permit limited activity relating to these entities to fulfill the G7 commitment to reduce Russian revenues from oil, which they claim are being used in its war against Ukraine and other harmful foreign activities.The OFAC said it has also designated numerous energy sector parties and issued a new Russia-related petroleum services prohibition.Effective Jan. 14, 2025, the local oil companies implemented an increase of P0.80 per liter for both gasoline and kerosene, while diesel increased by P0.90 per liter.This is the second price adjustment for the year 2025.On a year-to-date basis, both gasoline and kerosene have a total net increase of P1.80 per liter, while diesel has a total net increase of P2.30 per liter.
