By Sheldeen Joy Talavera, A reporter
DIESEL PRICES could reach P115 per liter this week at gas stations within Metro Manila and nearby areas as a new wave of price hikes will be launched amid the Middle East conflict.
Energy Secretary Sharon S. Garin confirmed that the cost of diesel could exceed P100 per liter this week.
“It’s possible. Actually, our estimate is that it could reach P115,” he told reporters in a mixture of Filipino and English.
Starting Tuesday, March 17, gasoline prices will increase by P12.90 to P16.60 a liter, diesel by P20.40 to P23.90 a liter, kerosene by P6.90 to P8.90 a liter.
Based on the monitoring of the Department of Energy (DoE), gasoline prices may increase to P91.60 per liter while diesel prices may increase to P114.90 per liter. Gasoline prices may increase to P143.79 per liter.
Some oil companies, including Shell Pilipinas Corp., Petron Corp., Total (Philippines) Corp., Seaoil Philippines, Inc., Flying V, and Jetti Petroleum, Inc., have agreed to delay the implementation of two to three phase increases during the week.
The latest price adjustment marks 12th consecutive weekly increases in diesel and kerosene prices, and 10th direct fuel week.
“Today, we are making history. We have the second highest level of oil prices. And (gasoline prices) are expensive,” said Ms. Garin.
Local pump prices remain high amid the ongoing US-Israel war with Iran, which has led to the closure of the Strait of Hormuz, a choke point for a fifth of the world’s oil.
As a net consumer of crude oil, the Philippines is vulnerable to fluctuations in global crude prices.
About 98 percent of the country’s crude products are found in the Middle East. The remaining 2% is imported from Brunei and Malaysia.
Adequate Provision
Ms. Garin confirmed that the Philippines has enough supplies to last until the end of April.
“The most important (thing) today is that we have supplies. There is no need to scare our people,” he said.
Mrs. Garin said the government is negotiating more fuel supplies with other countries, including South Korea, Thailand, Singapore, and Japan.
The DoE also contacted the Philippine National Oil Co. owned by the government to seek other suppliers for stock.
Meanwhile, Mrs. Garin said the country’s remaining oil refiner, Petron, is in talks with Russia about crude oil supplies as the US eases sanctions.
“We are waiting for that in terms of progress with the purchase negotiations in Russia, but we have done the work,” he said.
Ms Garin said she was in favor of revising the oil cut-off law, but only to a certain extent.
“I believe that this system only works in good times. If the prices agree with everyone, things go well. But in bad times, it doesn’t work well,” he said.
Enacted in 1998, the law allows oil companies to set and adjust pump prices based on global oil prices and other market factors, instead of waiting for government approval.
“At times like this, there should be some regulation. Not because we want to reduce profits or existing competition, but we also want to protect public interests,” said Ms. Garin.
The Energy Minister also confirmed that the country has stable electricity, but the consumption of electricity must be controlled.
In a statement on Monday, consumer group ILAW Pilipinas urged the government to implement immediate measures that would help prevent consumers from falling prices, including the suspension or reduction of property taxes and taxes on fuel and electricity.
“The possible increase in electricity prices shows how international conflicts can quickly turn into higher costs for households and small businesses,” said ILAW Pilipinas Youth Convenor Francine Pradez.
