DOE reveals new estimates for fuel price hikes this week
The Department of Energy warned of a possible price increase for fuel resources that could go as high as P114 per liter this week amid the ongoing tensions in the Middle East.
In a press conference on March 16, Energy Secretary Sharon Garin discussed their estimates on fuel price hikes that oil companies may implement in the coming days.
For gasoline, the price range in the past week was P63.40 to P75, and this could go up by P12.90 to P16.60. Diesel, on the other hand, had a price range of P75.95 to P91. This could increase by P20.40 to P23.90 by this week. Lastly, kerosene was priced at P85 to P134.89 last week and can go up to P6.90 to P8.90.
For specific oil companies, the price hikes are as follows:
- Total: P14.10 for Gasoline, P20.70 for Diesel
- Shell: P16.60 for Gasoline, P23.90 for Diesel, and P6.90 for Kerosene
- Seaoil: P16.30 for Gasoline, P23.30 for Diesel, and P6.90 for Kerosene
- Petron: P12.90 for Gasoline, P20.40 for Diesel, and P8.90 for Kerosene
- Flying V: P12.90 for Gasoline, P20.40 for Diesel, and P8.90 for Kerosene
Total and Seaoil will roll out the new prices from March 17 to 18, while Shell, Petron, and Flying V will implement theirs until March 19.
Garin noted that the prices will still depend on various discrepancies, such as the gas station's location.
"Kapag mas malayo 'yung gas station, mas mahal siya. That's just how it is because there's additional transport, additional insurance, marami pang mga logistics," she explained.
"May mga gas stations na nagbebenta last week ng diesel na P70, meron ding nagbenta ng P90. So halimbawa, kung P70 ka last week, ang pinakamataas mo na ma-charge would be P94, pero kung nagbenta ka ng P90 last week, posible ka mag-charge ng P114," she said.
According to her, the price range estimates are for Metro Manila and urban areas. When it comes to remote places, however, prices may be higher.
"Kapag dumating ka na ng, halimbawa sa Batanes, mas malaki ang transport costs nun, and some of them are independent gas stations so may sarili silang computation," Garin said.
The government is unable to control fuel prices since the oil industry is deregulated, meaning oil companies are obligated to only report and justify their price adjustments to the DOE.
Tensions in the Middle East escalated after Israel, with support from the United States, carried out airstrikes on Iran on Feb. 28 that killed Iranian Supreme Leader Ali Khamenei. The resulting retaliatory attacks have destabilized the region and rattled global markets, including the energy sector.
The Philippines is particularly vulnerable to the ongoing conflict in the Middle East as it imports about 98% of its crude oil from the region, according to the Philippine Information Agency. Countries such as Saudi Arabia, Iraq, and the United Arab Emirates are among the world’s leading oil exporters.