Summary
Highlights
Diesel prices are anticipated to reach up to ₱114 per liter in Metro Manila and surrounding areas due to the second round of mega oil price hikes. Prices may be even higher in remote provinces. The Department of Energy is concerned that oil prices will continue to surge as the war in the Middle East prolongs.
For this week's oil price hike, diesel prices are projected to increase by ₱2.40 to ₱2.90 per liter, bringing the total to potentially ₱114 per liter. Gasoline prices will see an increase of ₱1.90 to ₱1.60, resulting in a new range of ₱76.30 to ₱91.60 per liter. Kerosene prices are expected to be between ₱91.90 and ₱143.79 per liter. These prices apply to Metro Manila and other major cities, with potentially higher rates in more distant provinces due to additional transportation and insurance costs.
Consumers are expressing hardship due to the rising fuel prices, impacting daily commutes and livelihoods. Some are deciding to pause their work or activities that rely on fuel. Many are rushing to refuel and get a full tank before the price hike takes effect to save money, with some calculating the potential savings from preemptive fueling.
The Department of Energy is deeply concerned about sustained oil price increases if the Middle East conflict continues. While 20% of refined products (diesel and gasoline) are imported from China, South Korea, and Japan, which have signaled reductions, the Department of Energy mentioned that alternative, though potentially more expensive, suppliers exist. Russia and South America are being considered as potential sources. The energy department also assured that despite the upcoming summer and increased demand, there will be no issues with electricity supply or rotational brownouts, even in off-grid areas, as only 3% of the country's energy mix relies on oil.