Fuel retailers urged to stagger double-digit price hikes

THE DEPARTMENT of Energy (DoE) urged oil companies to stagger this week’s double-digit pump price hikes, with diesel and kerosene prices expected to climb by more than P10 per liter.

Starting Tuesday (July 21), gasoline prices will rise by up to P3.65 per liter, while diesel will jump by as much as P10.68 per liter, according to the DoE. Kerosene prices will also go up by as much as P11.77 per liter.

“We are in talks with the oil companies to appeal to them to give discounts to our public utility vehicles and also if they can stagger the increase for this week little by little so our jeepney drivers can properly plan when they will refuel so they won’t be suddenly caught off guard by a very high increase right away,” Energy Secretary Sharon S. Garin said at a briefing on Monday.

As of press time, Shell Pilipinas Corp. and Seaoil Philippines, Inc. said they will implement the price hikes for diesel and kerosene over a three-day period starting Tuesday.

Shell and Seaoil said they will hike gasoline prices by P3.60 per liter on Tuesday, while diesel prices will go up by P8.20 per liter on Tuesday, followed by a P1.20 hike each on Wednesday and Thursday.  For kerosene, prices will go up by P8.10 per liter on Tuesday, by P2.30 on Wednesday and by P1.20 on Thursday.

The latest adjustments will drive up pump prices in the National Capital Region, with gasoline prices reaching as high as P99.75 per liter, diesel at P101.43 per liter, and kerosene at P137.27 per liter.

Ms. Garin said renewed hostilities in the Middle East have disrupted the oil supply chain and sparked more uncertainty.

“Heightened tensions and developments in the Middle East are affecting global oil markets because these markets are interconnected. They are driving price adjustments up across every importing country,” she said. 

Renewed hostilities between the US and Iran have again disrupted the flow of energy supplies through the Strait of Hormuz, which handles around a fifth of the world’s oil supply. The Philippines, which sources about 90% of its oil supply from the Middle East, has been one of the most affected by the global oil crisis.

Energy Undersecretary Alessandro O. Sales said the possible closure of the Red Sea, another crucial maritime corridor between Africa and Asia, would worsen the situation.

“That was issued as a warning by Iran not to target their energy facilities. If they do, they warned they would have the Houthis shut down the exit in the Red Sea,” he said.

Ms. Garin said that while the Philippines has no control over global oil prices, the DoE is ramping up price monitoring and beefing up oil inventory.

“Prices cannot be controlled. What we can do is monitor to ensure there is no abuse, no overpricing, hoarding, and we can enforce all these laws with the help of other government agencies, including the DoE, to monitor prices — so that even if they are high, the correct and justified price is what is being charged,” she said.

To ease the impact of the latest price hikes, Ms. Garin said the government is continuing its fuel subsidy program for qualified jeepney, UV express drivers and other eligible beneficiaries.

As of July 17, the country’s fuel inventory was enough to meet average daily demand of 78.08 million liters for about 45.77 days.

The country’s inventory for gasoline was equivalent to 43.37 days of demand, 45.94 days for diesel, 139.97 days for kerosene, 82.31 days for jet fuel, 28.83 days for fuel oil, and 34.30 days for liquefied petroleum gas. — S.J. Talavera