P5.50/l for diesel, P3.50/l for gas on Tuesday; Government seeks solutions
Consumers must brace for a P5.50 per liter increase in diesel prices and a P3.50 hike in gasoline pump prices by Tuesday—one of the biggest one-time price adjustments since the passage of the Oil Deregulation Law in 1998.
Unioil Petroleum Philippines forecast fuel prices to go up from March 8 to 14 by P5.40 to P5.50 per liter for diesel and P3.40 to P3.50 per liter for gasoline, triggered by the ongoing Russia-Ukraine conflict.
This has forced the Duterte administration’s economic managers to meet on Monday to discuss how the soaring oil prices will impact domestic commodity prices, and craft immediate solutions to cushion its effects on the economy Rosemarie Edillon, National Economic and Development Authority (NEDA) Undersecretary, said during the Laging Handa briefing on Saturday that they, the Department of Finance (DOF), Department of Budget and Management (DBM), and the Bangko Sentral ng Pilipinas (BSP), will exchange analyses and estimates on how the continued increase in oil prices will impact inflation this month.
Energy Secretary Alfonso Cusi has also ordered the DOE to expedite the implementation of its strategic petroleum reserve plan — the government’s oil buffer stock—to cushion the impact of price hikes in the domestic market.
Tuesday’s forecasted increase will be the 10th weekly consecutive price increase since January as world oil prices continued to surge. On March 3, the benchmark Dubai crude soared to $116.56 per barrel, but slightly declined to $108.80 per barrel a day later.
Based on data from the Department of Energy (DOE), the latest oil price hike will bring the average price of gasoline to P69.28 per liter, diesel at P58.65 per liter, and kerosene at P62.21 per liter.
However, some stations in the National Capital Region sell gasoline at a high of P79.48 per liter (RON91) and diesel at P62.59 per liter. Prices vary depending on the brand, location, and market forces.
“We will see what will come out in our estimates and what we can do about it. Once we have the estimates, what will be the immediate solutions—short-term, medium-term, long-term solutions,” Edillon said.
The NEDA official said the government’s economic team is also monitoring how rising oil prices will impact food prices.
In an interview on Dobol B TV on Saturday, DOE-Oil Industry Management Bureau Director Rino Abad said Cusi discussed the strategic petroleum reserve plan during an emergency meeting with oil companies.
“The strategic petroleum reserve was discussed. Secretary Cusi wants that implemented soon,” Abad said.
The strategic petroleum reserve plan, he said, will be implemented in two phases—short-term and long-term. Under the short-term plan, Abad said the government will lease available spare capacity from the existing storage tank of oil companies.
The government will also contract an oil company to handle its orders for buffer stocking.
“The long-term plan is for the PNOC [Philippine National Oil Company] to build its own storage tank,” Abad said.
Cusi on Wednesday reiterated the DOE’s plan to establish the country’s strategic petroleum inventory as domestic petroleum prices have consistently gone up since the year started due to supply disruptions and the ongoing Russian invasion of Ukraine.
Abad said the strategic oil reserves of the government, once triggered, will be released to the public at a much lower price than the market’s actual price since the government does not aim to profit from its sale.
Economic managers earlier said the government is ready to provide targeted relief assistance to alleviate the impact of the recent spike in petroleum prices to affected sectors.
The government is preparing to release P2.5 billion for the Fuel Subsidy Program of the Department of Transportation (DOTr) to provide fuel vouchers to over 377,000 qualified PUV drivers who are operating jeepneys, UV express, taxis, tricycles, and other full-time ride-hailing and delivery services nationwide.
The Department of Agriculture also has a budget of P500 million for aid through fuel discounts to farmers and fisherfolk who either individually own and operate agricultural and fishery machinery or operate through a farmers organization or cooperative.