Oil price hike is always inevitable

Editorial:

Oil price hike is always inevitable even before the pandemic has started. It became worst today after lockdowns and russian war on ukraine. Inflation rate increased when we import and export goods. Inflation is happening in Ph and US and other parts of the world. we must consider to think our expenses wisely in terms of law of demand and supply.

Effective 11 October 2022, the oil companies implemented a per liter increase in the price of gasoline by P1.20, diesel by P6.85 and P3.50 for kerosene. These resulted to the year-to-date total adjustments to stand at a net increase of P15.65/liter for gasoline, P35.80/liter for diesel, and P26.75/liter for kerosene. 

On the supply side, an oil leak was detected on one of the two lines of the Western section of Russia’s Druzhba pipeline, which supplies crude oil to Germany. Platts said, the affected pipeline is part of the system that delivers Russian Urals crude to Germany’s Schwedt and Leuna refineries via Poland. The 230,000 b/d Schwedt refinery, which supplies about 90% of Berlin’s fuel needs was still receiving oil deliveries from the Druzhba pipeline but at reduced capacity. The International Monetary Fund lowered its forecast for 2023 global GDP growth to 2.7%, down 0.2 percentage point from its July forecast, noting that Russia's war on Ukraine continues to destabilize the global economy, while it has led to a severe energy crisis in Europe that is sharply increasing costs of living and hampering economic activity.