Metro Manila, Philippines – Supply jitters in the wake of the Israel-Iran conflict could trigger a substantial fuel price hike across all products next week, the Department of Energy (DOE) said on Friday, June 20.
Based on the four-day trading data, the DOE said gasoline prices may go up by P2.50 to P3 per liter on Tuesday, June 24.
Diesel may cost P4.30 to P4.80 more per liter, and kerosene P4.25 to P4.40 per liter.
“Major oil price shock looming as Israel-Iran conflict threatens critical global shipping passage,” Oil Industry Management Bureau Assistant Director Rodelo Romero said.
OIMB Director Rino Abad also explained there are no reports from local companies, even LPG industry players, of supply disruption.
“Surprisingly masyadong naha-hype up no’ng speculation,” Abad told state broadcaster PTV’s Bagong Pilipinas Ngayon. “Unang una, wala pang actual supply disruption from Iran, lalo na ‘yong Persian Gulf, wala talagang blockage of Strait of Hormuz.”
[Translation: Surprisingly, the adjustment is hyped up by speculation. There is no actual disruption from Iran, especially in the Persian Gulf, and there is no blockage of Strait of Hormuz.]
He said that even a possible disruption in Iran would not have a large-scale effect as its exports only cover a small percentage of global demand.
Energy officer-in-charge Sharon Garin previously appealed to industry players “to implement staggered fuel price adjustments, especially in cases of sudden and significant spikes in global oil prices, in order to cushion the impact on local consumers.”
But Abad acknowledged that companies could not completely follow such an appeal, based on previous experiences.
“Ang importante, two things hindi huminto ang mga oil company sa pag-ooffer ng mga discount, existing discount promo at kung pwede madagdagan pa… ‘Yan ay subject sa discussion na gagawin next week with individual oil companies,” he told NewsWatch Plus.
[Translation: What’s important is that oil companies should not stop in offering discount promos, and, if possible, introduce more, which would be subject to our discussion next week with individual oil companies.]
Malacañang has said fuel subsidies are in place for public transport drivers, farmers, and fisherfolk once the price of Dubai crude — the price benchmark for exports to Asia — reaches $80 per barrel. Dubai crude traded at $70.83 per barrel on Wednesday.
Companies on Tuesday implemented an increase of over P1 per liter.
Year-to-date adjustments for gasoline price is a net increase of P6.90, diesel a net increase of P6.65, and kerosene a net decline of P0.75 per liter.
