P90-diesel? Philippines may see record pump prices amid global oil crisis

National

A P90 per liter for diesel could soon be the new reality in the Philippines as global tensions in the Middle East push fuel costs toward double-digit increases.

Industry sources warned that motorists and businesses may feel the impact as early as next week.

After four days of volatile trading on the Mean of Platts Singapore, diesel prices could surge by nearly P20 per liter, while gasoline may rise by close to P10 per liter.

Final adjustments could still increase further, with one trading day left.

Energy Secretary Sharon Garin said oil companies are “amenable” to staggering next week’s price hikes.

The surge comes amid the closure of the Strait of Hormuz, a key trade route for 20 percent of the world’s oil and gas, and China’s suspension of new gasoline and diesel export contracts.

Jetti Petroleum president Leo Bellas said in a Philstar report, “Asian refiners are struggling to secure prompt replacement crude cargoes, with some Chinese refiners already cutting runs and suspending fuel exports, resulting in a reduced available supply in the region.”

He added that diesel is more sensitive than gasoline to these disruptions and that concerns are rising over how long Middle East shipping channels will remain blocked, as storage tanks fill and producers are forced to cut output.

President Ferdinand Marcos Jr. said current stockpiles can last about 50 days for diesel, gasoline, and fuel oil; 67 days for kerosene; and 29 days for liquefied petroleum gas.

The government plans to procure one million barrels of diesel, enough for an additional five days of demand.

The Department of Energy has stepped up monitoring against hoarding and profiteering.

Garin emphasized that fuel stations may increase prices only once a week unless authorized and urged the public to report violations. She said the DOE is coordinating with the Philippine National Police and the Department of the Interior and Local Government to ensure swift action against offenders.

DOE-Oil Industry Management Bureau director Rino Abad said diesel could reach P79 to P80 per liter after four days of trading, with gasoline possibly rising to P64 or higher.

He noted that pump prices for diesel and gasoline previously breached P80 per liter during the 2022 Middle East conflict and that the current situation is more severe.

Manibela chairman Mar Valbuena said a gas station chain, Oiland, is already selling diesel at P90 per liter. He warned that some jeepney operators may stop routes due to rising fuel costs and urged Congress to authorize a fuel excise tax suspension.

Former Bayan Muna representative Carlos Zarate cautioned that inflation could surge if the government does not act decisively.(MyTVCebu)