Double-digit fuel price hike expected this week

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MANILA, Philippines — Filipinos can expect an epic spike in local fuel pump prices in a few days as fears of a major petroleum supply crunch sent prices to a global high of $139 a barrel.

This is expected to translate to an increase of between P11.75 and P11.95 per liter for diesel, P6.90 to P7.20 per liter for gasoline, and P9.70 to P9.80 per liter of kerosene.

The sharp increase in diesel prices is due to the bigger demand for this fuel compared to gasoline in the Asian spot market. Aside from pricing, the deregulation of the regional market for diesel continues to push prices up, especially for finished petroleum products that are imported.

While oil prices are beginning to slowly decline to $110-per-barrel rate, the soaring energy costs could raise inflation and hobble the country’s COVID-19 recovery.

The spike in prices is set to be reflected at the pumps on Tuesday, March 15.

Cumulative increase

Once implemented, the net cumulative increase since January would already exceed the full-year increase in 2021 of P15.80 for diesel and P16.30 for gasoline.

It would also bring local pump prices to as much as P83 per liter for diesel and P94 per liter for gasoline.

The rates could even be steeper in remote or far-flung areas where the additional transport costs would be higher.

To help consumers, Energy Secretary Alfonso Cusi appealed to oil companies to stagger the pass-on of increases, which some of them did last week.

It remains to be seen, however, which companies would heed the secretary’s call this time.

Other measures that the government had extended were the P5 billion worth of fuel subsidy to the public transport sector and the P1.1 billion worth of financial assistance to agricultural workers.

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