Diesel Prices Poised for Double-Digit Jump Next Week

MANILA, Philippines — Domestic diesel prices are anticipated to surge by P10 to P10.50 per liter next week, while gasoline prices could climb by P4.50 to P5 per liter. This marks the third substantial pump price increase within a month. Department of Energy (DOE) Oil Industry Management Bureau Director Rino Abad stated that a significant oil price hike is highly expected due to the continuous rise in global oil prices. "There is a very high chance that the price increase will continue. We expect a significant increase next week, and this is consistent with the very large difference, or increase, in our international benchmark prices," Abad said. As of the fourth day of trading in the world market, diesel prices have increased by almost P10 per liter, gasoline by over P5 per liter, and kerosene by P7 per liter. The recent upward trend in local prices is primarily attributed to the damage on Saudi Arabia's East-West Pipeline (Petroline) following a drone attack. This damage exacerbates the effects of disrupted operations in the Strait of Hormuz on global oil supply. International reports indicate that the Saudi government has shut down the pipeline, and repairs could take over a month. Abad noted that even after the pipeline's operations are restored, high prices for domestic oil and fuel products are likely to persist. "If it's restored, we would probably only go back to the P80 to P90 range, compared to the P50 to P60 range before the war," he explained. Given the magnitude of the expected price hike, the Department of Energy plans to appeal to local oil companies to implement a staggered price increase. "Whenever the increase is this large, we always request oil companies if they can stagger the implementation, even within next week," Abad said. Earlier this week, the DOE certified that global oil prices have surpassed the $80 per barrel benchmark set by Philippine law, which allows the government to suspend excise taxes on fuels. On September 14, the DOE announced price hikes of P5.68 per liter for gasoline, P4.31 per liter for diesel, and P4.62 per liter for kerosene. Abad mentioned that current diesel prices are ranging from P114 to P115 per liter.