MANILA, Philippines — Diesel and kerosene prices are expected to increase next week due to the weakening of the Philippine peso against the U.S. dollar, while the price of gasoline may see a decrease, Energy Secretary Alfonso Cusi said Friday.
“It is confirmed that there is [an] indication of slight price increases next week, particularly on diesel and kerosene,” Cusi told INQUIRER.net in an online message.
The price of gasoline, however, may see a rollback, he said.
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According to Cusi, the prevailing international fuel price actually “indicates a decreasing trend.”
This trend, Cusi said, is due to China’s ongoing lockdown, which he noted suppressed the demand for the product. He also cited the “recent US interest hike causing tighter capital access vis a vis decreasing economic activity and suppressing fuel demand.”
“These decreases which are in US dollar per barrel, however when converted to Philippine peso ultimately caused slight increases in prices due to the sudden weakening of peso against the US dollar by as much as Php 1.00 just for the past four days this week,” he, however, pointed out.
On Thursday, the Philippine peso plunged further, closing at 54.7 against the U.S. dollar, according to the Bank Association of the Philippines’ foreign exchange summary.
This placed the local currency at its weakest since November 11, 2005, when the Philippine peso closed at 54.71 versus the U.S. dollar.