Fuel prices up for ninth week

(INQUIRER FILE PHOTO)

MANILA, Philippines — Filipinos may have to tighten their belts a little longer as prices of petroleum products are expected to continue its upward trend as tensions between Russia and Ukraine escalate.

Major oil companies on Monday announced the ninth consecutive fuel price hike this year to be implemented on Tuesday. Prices of diesel and gasoline will increase by P0.80 and P0.90 per liter, respectively, while kerosene prices are set to rise by P0.75 per liter.

Since January, the net cumulative increase has reached P11.65 for diesel, P9.65 for gasoline, and P10.30 for kerosene.

“This is a global concern,” said Gerardo Erguiza Jr., undersecretary of the Department of Energy (DOE), during the Laging Handa briefing on Monday, pertaining to the rising oil prices. “This started when countries began to solve the woes of the pandemic and many have been vaccinated. Economies are beginning to open up again.”

“We need the energy and transport sectors more, that’s why demand [for oil] has been picking up while production is not able to keep up. There has been a commitment from Opec (Organization of the Petroleum Exporting Countries) to increase production as early as October [last year] but this is not sustained,” he added.

As of Monday afternoon, Brent crude prices were at $103.15 a barrel while Dubai crude stood at $92.07 a barrel. The Mean of Platts of Singapore (MOPS), the price reference of most Philippine oil firms, also remained bullish.

Erguiza said the DOE already wrote to both the House and the Senate urging lawmakers to amend the oil deregulation law and suspend the excise on oil once prices hit $80 per barrel.

He also cited MOPS’ projection that oil prices may hit $120 a barrel. This could translate to higher fuel prices that may range between P66 to P77 per liter, depending on the quality and type of fuel.

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