BIG-TIME OIL PRICE HIKE LOOMS; Diesel may increase by P11, gasoline by P5 per liter

National

THE ROAD could get more expensive for motorists next week, with diesel prices seen climbing by nearly P11 per liter and gasoline by as much as P5.

Jetti Petroleum president Leo Bellas said diesel prices could increase by P10 to P10.50 per liter on Sept. 22, while gasoline prices may rise by P4.50 to P5 per liter.

The estimates are based on four-day movements in the foreign exchange rate and the Mean of Platts Singapore, the regional benchmark for refined petroleum products in Asia-Pacific markets.

Bellas said oil prices surged following attacks in the Strait of Hormuz and the Red Sea, key oil transit routes in the Middle East. Attacks on Saudi Arabia’s East-West pipeline also forced a shutdown, raising concerns over Saudi export capacity and global energy supplies.

Attacks on Russian refineries, another major source of diesel, added to supply concerns and pushed diesel prices to record highs. Asian gasoline prices also remained elevated amid firm regional demand and fears of further disruptions to Middle East supplies.

The projected increases are not yet final, as domestic pump price adjustments will depend on the outcome of the week’s last trading day. Oil companies are required to comply with the maximum price increases prescribed by the Department of Energy amid the ongoing energy emergency.

The Department of Transportation is meanwhile seeking the restoration of its fuel subsidy program after its request was excluded from the proposed 2027 national budget by the Department of Budget and Management.

During Senate deliberations, Sen. Bong Go questioned the absence of funding and said the government should prepare resources before fuel prices rise rather than seek funds after drivers begin asking for assistance.

“I noticed that no budget was included for fuel subsidy next year. It should have been given priority because we noticed that when fuel prices increase, when our countrymen complain, it’s only the time when government scours for funds, hurriedly looking for sources. The government should be ready, the DOTr, to give fuel subsidy. Every peso, every cent, is very important for our countrymen,” Go said in a Philstar article.

Transportation Secretary Giovanni Lopez confirmed the unfunded request and said fuel subsidies provide immediate relief for transport operators during oil shocks.

Meanwhile, Malacañang said the government is expanding measures to cushion vulnerable sectors. As of Sept. 14, the country had fuel inventories equivalent to 57.2 days of gasoline, 60.8 days of diesel and 39.3 days of liquefied petroleum gas.

The government also continues cash assistance, repatriation support and commuter relief measures, including fare discounts, terminal-fee waivers and Libreng Sakay services.(MyTVCebu)