Diesel, Gasoline Prices in Metro Manila Breach P100 Mark Amid Mideast Tensions and Peso Depreciation

Diesel and gasoline prices in Metro Manila have again hit the P100 per liter mark, with some stations charging as much as P102, as ongoing Middle East fighting continues to influence oil markets and oil companies implemented price hikes of approximately P5 per liter on Tuesday. "We have an oil price hike in domestic petroleum prices driven largely by higher international oil prices following renewed tensions affecting energy flows through the Middle East. The depreciation of the Philippine peso against the US dollar has also added pressure on domestic pump prices because we buy them in dollars, not in Philippine peso," Energy Secretary Sharon Garin stated in a media briefing on Monday. The Department of Energy (DOE) indicated that local retailers could impose price increases of up to P4.69 per liter for gasoline. Diesel prices also saw a rise of up to P5.18 per liter, while kerosene experienced the largest increase, reaching P5.58 per liter. Prior to these recent increases, prevailing retail prices in the capital region ranged from P66.06 to P97.35 per liter for gasoline, P75 to P97.50 for diesel, and P95.30 to P130.52 for kerosene. Rino Abad, director of the DOE’s Oil Industry Management Bureau, commented that the range was "quite elevated" already, with diesel and gasoline prices nearing the P100-per-liter threshold. He recalled that the peak of price surges occurred in April, reaching as high as P155 per liter, during periods of intensified bombings between the United States and Iran, in addition to the fighting between Israel and Hezbollah in Lebanon. Amid challenges in securing a fresh supply of fuel, the Philippines is stepping up its efforts to establish the country’s fuel reserve system. The government currently does not own any refineries or storage facilities and relies on local fuel companies to maintain a certain amount of petroleum products and crude oil under minimum inventory requirements. In May, Japan’s Ministry of Economy, Trade and Industry pledged to support the Philippines by launching feasibility studies for the project and providing capacity building. According to Abad, the DOE has already submitted a concept note to its counterparts. Abad further mentioned that oil giant Saudi Aramco has proposed a plan to build an export hub in the Philippines, where crude oil would be stored. He added that Petron Corp., the country’s sole refiner, could source its crude supply from Aramco’s proposed facility.