MANILA - Oil companies are expected to jack up gasoline prices on Monday as a sudden but fleeting surge in demand pushed gasoline prices up in the world market.
Energy Undersecretary Zenaida Monsada said the increase in prices was brought by a surge in gasoline demand in Indonesia and Vietnam which triggered a small spike in the average prices last week.
Monsada said the retail hike will be less than P0.50 per liter, halting the series of price rollbacks since the beginning of 2015.
Total price slash since the first week of January 2015 have amounted to P3.90/liter for gasoline and P3.75/liter for diesel.
For the whole of 2014, the net reduction for diesel amounted to P15.03/liter while the total rollback for gasoline was P13.29/liter.
Monsada said after the expected increase this week, it is possible that rollbacks will again return as overall the situation remains -- low global demand for fuel and overproduction continues, despite dipping demand.
LPG rollback seen in February
Monsada said the Department of Energy is also expecting another price reduction for cooking gas which also follows the trend of other fuel products.
January LPG prices have gone down by P5.50/kilogram.
In 2014, net reduction amounted to P28.52/kilogram or more than P313/11kg cyclinder.