Local fuel prices surge for 12th time this year

Tuesday’s increase in fuel prices will be the 12th this year. (INQUIRER FILE PHOTO)

MANILA, Philippines — Oil firms announced another hefty price hike on Monday, indicating that the upward trend in fuel prices was far from over.

After the run-up in fuel prices took a break last week following a record-high rollback, major oil players said the price of diesel and gasoline would rise by P8.65 and P3.40 per liter, respectively, on Tuesday while kerosene prices would increase by P9.40 per liter.

This is now the 12th fuel price hike this year. Since January, diesel and gasoline prices have already risen by P27.85 and P18.30, respectively, effectively pushing up everyday costs and dampening economic recovery.

The price of liquefied petroleum gas (LPG) is expected to go up, too, which could significantly constrict household budgets. Four out of every 10 Filipino households use LPG daily as fuel cooking, heating and lighting, according to government data.

Players usually announce LPG price adjustments by the end of the month.

Ban on Russian oil

Analysts continue to blame Russia’s invasion of Ukraine for the rise in oil prices. Exports of Russian oil by sea actually fell to their lowest level in nearly eight months last week after several countries decided to ban the use of Russian oil.

As of Monday morning, the price of Dubai crude — Asia’s bellwether — was at $111.82 a barrel from last month’s quotation of $91.59.

The Mean of Platts Singapore, the regional pricing benchmark for refined oil products, also went up.

Aside from the geopolitical tension caused by Russia, market premiums and higher freight costs also catapulted prices at the pump to another hefty increase.

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