Fuel prices expected to jump P17 to P24 per liter this week—DOE
Department of Energy Secretary Sharon Garin warned of a fuel price increase from P17 to P24 per liter this week.
During the House Committee on Ways and Means hearing on fuel excise taxes on Monday, March 9, Garin said that while the looming prices are not the highest Philippine motorists have experienced, these present the biggest jump.
"It's not the highest [price] in history. But the one that will be implemented tomorrow will be the highest jump," the DOE secretary said.
The price adjustment will be carried out between Tuesday, March 10, and Monday next week, March 16.
"What's positive about the news today is that [fuel companies] have agreed to stagger [the price hike]," Garin said. Some companies have committed to raising prices in increments of P2.50 or P10, and not all at once.
As of March 8, several oil firms, including Shell, Petron, and Total, have given notice on the schedule of fuel price increases. See the price hike schedule below.
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 Department of Energy.
According to Garin, if the price hikes extend beyond one week, these will have a longer effect on the economy, with fares and other costs rising as well.
Since the Philippines imports 98% of its crude oil from the Middle East, according to the Philippine Information Agency, the country is heavily affected by the current conflict in the region. Middle Eastern nations Saudi Arabia, Iraq, and the UAE are among the world's top exporters of oil.
The conflict in the Middle East began when Israel, in coordination with the US launched airstrikes on Iran on Feb. 28, taking out Iranian Supreme Leader Ali Khamenei. Retaliatory attacks have upended the region, as well as markets across the globe.
