Ph govt’s eyes incremental fuel hikes amid Middle East crisis

National

AS THE conflict in the Middle East is expected to affect global oil prices, the government is eyeing a staggered price implementation strategy with local fuel companies.

The move aims to cushion consumers from a single, massive price jump if international rates spike again next week.

In a report by Inquirer.net, major oil companies including Seaoil, Jetti Petroleum, Caltex, and Petron announced a new round of significant price hikes in separate advisories issued Monday, March 2.

Gasoline led the surge with an increase of ₱1.90 per liter, marking its eighth consecutive week of upward adjustments. Diesel and kerosene prices are also set to rise by ₱1.20 and ₱1.50 per liter, respectively, with diesel notably hitting its tenth straight week of price increases.

However, an industry insider warned that a "significant" spike in fuel costs could hit pumps next week if the geopolitical conflict involving the United States, Israel, and Iran continues to escalate.

Jetti Petroleum President Leo Bellas noted that the latest geopolitical events in the Middle East are not yet reflected in the current round of local fuel price changes. He said that if market trends persist, consumers should brace for a "significant increase" next week, citing a sharp spike in the costs of both crude and refined oil at the opening of recent trading sessions.

Given the expected price increases, Director Rino Abad of the Department of Energy (DOE)- Oil Industry Management Bureau said that the government may ask oil companies to roll out price increases in smaller, incremental phases.

This staggered strategy is intended to ease the burden on the public and prevent the immediate shock of a single, sharp spike at the pump.

The DOE is scheduled to reconvene on Friday, March 6, with private oil companies to discuss the matter. Abad further assured consumers that the country maintains a stable fuel inventory, still capable of lasting nearly two months.(Mary Angel Parac, BiPSU Comm Intern)