By Sheldeen Joy Talavera and Erika Mae P. Sinaking, Reporters
THE DEPARTMENT of Energy (DoE) will meet on Friday to review its fuel pricing rules as diesel prices are poised to rise by as much as P10 per liter (L) next week after renewed tensions within the Middle East reignited concerns over global oil supplies.
“[The single pricing adjustment] can be pursued,” Rino E. Abad, director of the DoE’s Oil Industry Management Bureau, told reporters on Thursday. “We’ll conduct a gathering tomorrow.”
The agency is considering replacing its practice of announcing a spread of weekly fuel price adjustments with a single prescribed adjustment amid heightened market volatility.
Energy Secretary Sharon S. Garin earlier said the DoE plans to set a definite price adjustment relatively than a versatile range.
“Because the prices still appear to be very volatile, we decided here within the DoE that next week, we are going to prescribe a particular number, now not a spread,” she told a news briefing.
After three trading days used to compute next week’s domestic fuel prices, diesel prices are projected to extend by P9 to P10 per liter, in accordance with an industry estimate.
Gasoline prices could rise by P3.50 to P4.50 per liter.
“World oil prices have increased significantly this week on account of the renewed hostilities within the Middle East, rekindling supply concerns as vessel traffic within the Strait of Hormuz declined significantly,” Jetti Petroleum, Inc. President Leo P. Bellas said in a Viber message.
The Strait of Hormuz handles a couple of fifth of worldwide oil shipments, making any disruption a serious driver of crude prices.
Top Line Business Development Corp. Senior Vice-President and Chief Operating Officer Brigitte Carmel C. Lim said local pump prices could proceed rising if elevated global prices persist.
“That said, it’s still too early to say whether we are going to see double-digit increases,” she said in a Viber message. “Much will rely on how the situation develops and whether tensions escalate further. For now, we’re closely monitoring the market and remain hopeful that geopolitical risks ease to assist stabilize oil prices.”
Effective on Tuesday this week, the DoE ordered oil corporations to regulate gasoline prices inside a spread of a P1-per-liter rollback to a P1-per-liter increase, while diesel and kerosene prices were allowed to rise by as much as P4.62 and P4.22 per liter, respectively.
In consequence, gasoline prices in Metro Manila and nearby areas have climbed to about P96.10 per liter, while diesel now costs around P90.77 per liter.
If next week’s projected increase pushes through, gasoline and diesel prices in Metro Manila and nearby areas could exceed P100 per liter.
EXPANDED AID
Also on Thursday, President Ferdinand R. Marcos, Jr. announced an expansion of the federal government’s Unified Package for Livelihood, Industry, Food and Transport Assistance Program to assist cushion the impact of upper fuel prices and rising inflation linked to the Middle East war.
“We proceed to feel the consequences of tensions within the Middle East, which threaten global oil supply,” Mr. Marcos said in a pre-recorded message in Filipino. “This affects our economy and the costs of products.”
Under the expanded program, about 1.5 million low-income staff and their families registered with the Social Security System will receive P2,000 a month from July to December.
One other 2.5 million for poor and near-poor households identified through the 2024 community-based monitoring system will get the identical monthly assistance over the period.
The federal government will even provide a one-time additional grant of as much as P2,000 to three.5 million beneficiaries of the Pantawid Pamilyang Pilipino Program and the Walang Gutom Program.
The expanded program is anticipated to profit about 7.5 million households, or roughly 37.5 million Filipinos.
“Our goal is to guard the flexibility of Filipino families to satisfy their each day needs,” Mr. Marcos said. “At the identical time, we’ve expanded the coverage of the help in order that more Filipinos can profit from this system.”
Palace Press Officer Clarissa A. Castro said the Department of Budget and Management had released a P12.375-billion special allotment release order and see of money allocation to fund the expanded assistance.
“The source is obtainable savings under National Budget Circular Nos. 602 and 603 as approved by the Office of the President,” she told a Palace briefing in Filipino.
Asked why the federal government was not extending direct money assistance to middle-income taxpayers, Ms. Castro said the administration is prioritizing vulnerable sectors while looking for to forestall increases in transport fares and commodity prices.
“One thing we hope to avoid immediately is a sudden increase in fares,” she said. If transport staff receive assistance, everyone advantages because fares and the costs of products won’t immediately rise, she identified.
She added that delivery vehicles transporting basic necessities proceed to receive government support, including toll-related incentives, to assist contain logistics costs.
The Philippines imports just about all of its petroleum requirements, leaving domestic pump prices highly sensitive to swings in global crude prices.
Ms. Castro said the federal government would proceed assessing its fiscal capability should the conflict persist.
“If there is out there budget, it is going to be released immediately to assist those that need it most, while the federal government continues to balance its resources,” she said. “We have no idea what’s going to occur in the approaching days. The situation may improve.”