Manila, Philippines – Pump price hikes of up to P24.25 per liter will be rolled out in tranches beginning Tuesday, March 10, as part of contingency measures to soften the blow of rising global oil prices from the Middle East conflict, the Department of Energy said.
The agency released a matrix at the week’s start showing six oil companies will this week raise fuel prices within a range of ₱17.50 per liter to ₱24.25 per liter for diesel; ₱7 to ₱13 for gasoline; and ₱32 to ₱38.50 for kerosene.
The price adjustments were made by Shell and Petron – which together account for over half of the market share – as well as by Total, Chevron, Jetti, and Seaoil Phils., Inc.
But the price hikes won’t be implemented in one blow: Gasoline will see daily adjustments of ₱1/l to ₱6.50/l; diesel, ₱2.40/l to ₱14.55/l; and kerosene, ₱3.60/l to ₱21.60/l depending on brand.
Those adjustments will bring gasoline prices to as much as P73.40/l at the end of the week, while diesel will cap the week at P87.44/l at most, according to the agency matrix.
The price hikes reflect increased global market volatility amid oil supply worries given lingering uncertainty over when the US-Israel military campaign against Iran will end.
Philippine pump prices use Dubai crude prices as benchmark as the nation imports most of its oil from Singapore, China and South Korea, energy officials said.
The agency has been in talks with large traders to replenish inventories, noting that government-to-government deals may not be a viable option as oil-exporting nations keep an eye on their own domestic stockpiles.
Other sources could be India, the US, and Canada, energy officials said.
“We have enough supply until the end of April. And we have enough time to order for more,” Energy Secretary Sharon Garin told a press briefing on Monday afternoon, adding that oil companies’ storage capacity is 15 days max.
“Our advice to them – order already because we don’t know how long this war will continue… What will distort the market is if some unscrupulous people will hoard,” Garin pointed out.
The agency so far has issued a show-cause order to 55 gas stations out of the 87 it inspected for signs of overpricing and profiteering.
