The Department of Energy (DOE) warned Monday that if global prices continue to rise, local gasoline pump prices per liter could reach P86.72, and diesel pump prices could reach P81.10.
Global oil prices have continued to rise, according to Energy Undersecretary Gerardo Erguiza Jr., and domestic pump prices are expected to increase even more if the upward trend continues.
“This is not just a problem of the executive department. This is a problem of course that will be a problem of all sectors in the government. We have a framework where we have the objective of fair pricing, but still we are unable to do that,” he said during the hearing of the Senate Committee on Energy concerning the effects of the Russia-Ukraine crisis on the country’s oil supply and prices.
For the previous ten weeks, domestic pump prices have been raised, with oil companies preparing to impose a significant boost this week, citing global constraints as a reason because Russia remains a major exporter.
The price per liter of diesel could rise by P12.20 to P12.30, according to Unioil Petroleum Philippines’ fuel price prediction for the March 15 to 21 trading week. Meanwhile, gasoline prices are expected to rise between P6.80 and P7.00 per liter.
The DOE has set the $80 per barrel Dubai crude price as its crisis benchmark, and the price has now risen to $120.34 per barrel as of March 14, 2022.
Gasoline price may hit P86.72 per liter, diesel P81.10 per liter – DOE
According to Erguiza, based on recent movement, local pump prices per liter might reach a high of P79.39 for gasoline, P75.59 for diesel, and P76.83 for kerosene.
If the global boom continues and Dubai crude oil reaches $140 per barrel, this will be reflected in domestic pricing, which will be P86.72 per liter for gasoline, P81.10 for diesel, and P80.50 for kerosene.
“The DOE has been strictly monitoring the sufficiency of supply, the quality of what’s being sold in the market… We want to assure the public that our supply is sufficient and what is really the problem is the cost of fuel,” Erguiza said.
As of March 10, 2022, prices for gasoline in Metro Manila range from P59.85 per liter (Caloocan) to P84.55 per liter (Muntinlupa), and for diesel from P55.20 per liter (Pasig) to P73.39 per liter (Taguig), according to the most recent statistics available from the Department of Energy.
As of March 8, 2022, year-to-date changes for gasoline, diesel, and kerosene totaled P13.25 per liter, P17.50 per liter, and P11.40 per liter, respectively.
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