By Sheldeen Joy Talavera, Reporter
DIESEL PRICES could reach as much as P115 per liter this week at gasoline stations inside Metro Manila and nearby areas as a fresh wave of big-time price increases is ready to be implemented amid the Middle East conflict.
Energy Secretary Sharon S. Garin confirmed that diesel costs could transcend P100 per liter this week.
“It’s possible. Actually, our estimate is that it could reach P115,” she told reporters in a combination of Filipino and English.
Starting Tuesday, March 17, gasoline prices will increase by P12.90 to P16.60 per liter, diesel by P20.40 to P23.90 per liter, and kerosene by P6.90 to P8.90 per liter.
Based on the monitoring of the Department of Energy (DoE), gasoline prices may go as high as P91.60 per liter while diesel may surge to P114.90 per liter. Kerosene prices may jump to P143.79 per liter.
Some oil firms, including Shell Pilipinas Corp., Petron Corp., Total (Philippines) Corp., Seaoil Philippines, Inc., Flying V, and Jetti Petroleum, Inc., have agreed to stagger the implementation of the rise in two to 3 tranches throughout the week.
The newest price adjustments mark the 12th consecutive weekly increase for diesel and kerosene prices, and 10th straight week for gasoline.
“Today, we set a record. We’ve two of the best jumps in oil prices. And (fuel prices) are also on the most costly,” Ms. Garin said.
Local pump prices remain elevated amid the continued US-Israel war with Iran, which led to the closure of the Strait of Hormuz, a chokepoint for one-fifth of the world’s oil.
As a net importer of crude oil, the Philippines is vulnerable to global crude price swings.
Around 98% of the country’s crude imports are sourced from the Middle East. The remaining 2% is imported from Brunei and Malaysia.
ADEQUATE SUPPLY
Ms. Garin assured that the Philippines has enough supply that might last until end of April.
“Crucial (thing) for today is that we have now supply. There isn’t a must cause panic amongst our people,” she said.
Ms. Garin said that the federal government is negotiating for added supply of fuel from other countries, including South Korea, Thailand, Singapore, and Japan.
The DoE has also tapped state-run Philippine National Oil Co. to look for alternative suppliers for stockpile.
Meanwhile, Ms. Garin said the country’s remaining oil refiner, Petron, is negotiating with Russia for supply of crude oil because the US eased sanctions on the latter.
“We’re waiting for that on what’s the progress and talks on procuring from Russia, but we have now already done the work,” she said.
Ms. Garin said she is in favor of revisiting the oil deregulation law, but to a certain extent.
“I do consider this technique is barely effective during good times. If prices are favorable for everybody, then things are nice. But in bad times, it doesn’t work very effectively,” she said.
Enacted in 1998, the law allows oil firms to set and adjust pump prices based on global oil prices and other market aspects, as an alternative of awaiting government approval.
“In times like this, there must be a certain control. Not because we would like to limit profit or competition that’s there, but we would like also to guard the interest of the general public,” Ms. Garin said.
The Energy chief also assured the country has a stable supply of electricity, however the consumption must be managed.
In an announcement on Monday, consumer group ILAW Pilipinas urged the federal government to implement immediate measures that might help cushion consumers from price shocks, including the suspension or reduction of local taxes and tariffs on fuel and electricity.
“A possible increase in electricity prices shows how quickly international conflicts can translate into higher costs for households and small businesses,” said ILAW Pilipinas Youth Convenor Francine Pradez.