Filipinos are bracing for price increases on four essential fuels heading into the new year, as supply disruptions amid the attacks on oil vessels in the Red Sea have jacked up transport costs for petroleum producers.
The price of liquefied petroleum gas (LPG) or cooking gas may rise by as much as P38 for each regular 11-kilo LPG tank used by householdsfor cooking by January, an official of Republic Gas Corp. (Regasco) said Thursday.
This developed as industry sources told the Standard that based on the three-day trading, gasoline may go up by as much as P1.58 per liter, kerosene by P1.55 per liter, and diesel by P1.43 per liter next week.
Citing the Red Sea situation, Regasco president Arnel Ty told ABS-CBN News last night: “There is a US$60 increase in freight or shipping costs per metric ton (of LPG). That will be equivalent to a P3.50 per kilo increase in shipping costs, so that will be added to the price of LPG in January.”
An 11-kilo LPG tank currently costs from P875 to P1,030 in Metro Manila, depending on the retailer and location, Department of Energy records showed.
Meawhile, the remaining two days of global trading this week will determine if the pump price increases will be lower, but the Standard source said this would likely remain at over P1 per liter.
Houthi rebels have launched attacks on vessels passing the Red Sea, raising concerns of oil supply disruptions.
The Red Sea, the seawater inlet between Africa and Asia, is a crucial route for oil and liquefied natural gas vessels, thus the Houthi attacks could have an impact on supply, the DOE said previously.
On Dec. 19, local oil firms implemented mixed movements in the prices of petroleum products.
They rolled back the pump price of kerosene by P0.85 per liter, but raised the price of diesel by P0.10 per liter. Gasoline prices did not change.
On Dec. 12, oil companies rolled back gasoline prices by P1.60 per liter, diesel by P1.85 per liter, and kerosene by P1.40 per liter.
These price adjustments resulted in a year-to-date net increase of P11 per liter for gasoline, P3.85 per liter for diesel and P0.54 per liter for kerosene.
