Motorists face a looming increase at the fuel pumps this week, halting a recent period of price relief. The shift comes as escalating logistical costs and rising insurance premiums, fueled by the ongoing conflict in the Middle East, put upward pressure on prices.
Energy officials anticipate gasoline prices could climb by as much as P2.21 per liter, while diesel may increase by P2.66. A notable decrease is expected for kerosene, with a potential rollback of P3.53 per liter, offering a small reprieve for those reliant on this fuel source.
While the global oil market has shown signs of stabilization in recent weeks, the situation remains volatile. Officials caution against expecting a sustained trend, emphasizing the inherent unpredictability of international oil prices.
Adding to the pressure, the Philippine peso has weakened, closing at P61.565 to the dollar. This depreciation further exacerbates the cost of imported fuel, directly impacting prices at the pump. The peso’s recent performance is only marginally stronger than its record low earlier this year.
These adjustments are projected to push prevailing prices in Metro Manila and other urban centers to approximately P107.11 per liter for gasoline, P107.48 per liter for diesel, and P146.46 per liter for kerosene. These figures represent a significant financial burden for many consumers.
The cost of liquefied petroleum gas (LPG) has also risen this month, increasing by P1.22 per kilogram. This translates to an increase of several pesos for a standard 11-kilo cylinder, impacting households that rely on LPG for cooking and heating.
Despite the price increases, the country currently maintains a sufficient fuel inventory, capable of meeting demand for roughly 53.71 days. This inventory includes reserves of gasoline, diesel, kerosene, jet fuel, fuel oil, and LPG, though levels have slightly decreased from the previous week.
Officials report that fuel deliveries are being reliably fulfilled, with both existing and new suppliers honoring contracts and responding to orders. While demand has seen a slight dip, supply chains remain stable, preventing immediate concerns about shortages.
The government has not yet considered procuring additional fuel supplies, despite recently importing over 150 million liters of diesel. Current reserves are deemed sufficient to address immediate needs and strategic priorities.
There is growing support for legislation aimed at removing the value-added tax (VAT) on electricity components. Officials believe this measure could contribute to lower energy costs for consumers, aligning with the Department of Energy’s commitment to affordability.
