Diesel prices may breach P115 per liter this week

National

MOTORISTS are bracing for a historic surge in fuel costs as diesel prices are projected to reach as high as P115 per liter this week.

Energy Secretary Sharon Garin announced the grim forecast on Monday, March 16, marking a period of unprecedented volatility in the local energy sector.

Starting Tuesday, March 17, oil firms implemented massive price hikes across all products. Diesel led the surge with an increase ranging from P20.40 to P23.90 per liter, while gasoline prices climbed by P12.90 to P16.60, a report by Philstar said.

Kerosene, a vital fuel for many rural households and small industries, will see an uptick of P6.90 to P8.90.

The current price ceiling represents a breaking point for many consumers.

“We have set a record with two of the highest jumps in oil prices and we are also at the most expensive (levels),” Garin stated, highlighting the dual challenge of rapid price acceleration and record-high costs.

The situation is even more critical in remote provinces, where added transportation logistics further inflate the cost at the pump.

Garin noted that diesel prices in Batanes had already hit the P100 per liter mark as early as last week, suggesting that areas outside the capital could see prices significantly higher than the P115 Metro Manila projection.

Major industry players, including Petron, Shell, Seaoil, Total, Flying V, and Jetti, have begun enforcing staggered price adjustments to manage the transition. This follows last week’s record-breaking single adjustment, which saw kerosene soar by up to P38.50 and diesel by over P24, triggered by the geopolitical fallout of the United States and Israel’s military actions against Iran in February.

To address supply concerns, the government is exploring several avenues to stabilize the domestic market. Petron, the country’s sole remaining oil refiner, is currently negotiating a deal to procure crude oil from Russia.

Simultaneously, the government, through the Philippine National Oil Co. (PNOC), plans to acquire one million barrels of diesel to provide an additional five-day supply buffer.

The Department of Energy (DOE) has reiterated that the country maintains a sufficient fuel buffer to last until the end of April.

However, the crisis has prompted the Philippine Energy Research and Policy Institute to call for a review of the decades-old Oil Deregulation Law, arguing that legislative changes are necessary to shield Filipino consumers from such extreme global price shocks.(Jhon Mark A. Aboabo, USJ-R Comm Intern)