Oil prices likely to remain high until yearend - DOE

The Department of Energy (DOE) does not foresee oil prices going down to pre-war levels anytime soon amid the prolonged conflict in the Middle East. In an Unang Balita report by Ivan Mayrina on Tuesday, global oil prices spiked anew after Houthi fighters attacked an airport in Saudi Arabia. This came after months of heightened tensions in the Middle East following the US-Israeli attack on Iran. “With the exchange rate and the situation in the Middle East, we expect that within the year, prices will not yet go down to pre-war levels. It will probably remain elevated until Christmas,” DOE Secretary Sharon Garin said. Several oil firms have implemented staggered price hikes, with diesel prices increasing by as much as P7.80 per liter on Tuesday and rising by another P1 per liter on Wednesday. The continued increases have taken a toll on public transport drivers, some of whom are questioning whether they can still afford to stay on the road. “Ayoko na, nakakapagod lang at wala na rin kikitain. Mag-construction na lang ako, mas mabuti pa, o mangalakal ng bote, mas kumikita pa,” taxi driver Danilo Tongcua said. (I don't want to do this anymore. It's tiring, and I'm no longer making money. I might as well work in construction or collect bottles. I could make more money that way.) Land Transportation Franchising and Regulatory Board officer-in-charge Greg Pua said the agency has received reports of jeepney drivers returning to their home provinces because of the rising cost of fuel. “We are continuously monitoring the situation. If we see that there are not enough vehicles, the government can provide free rides,” he said,” Pua said. The government is offering a P12-per-liter fuel discount for public utility vehicles. However, the DOE has acknowledged that the subsidy may not be enough to offset the impact of rising fuel prices. The agency has also sent to Malacañang the certification needed to suspend the excise tax on petroleum products. President Ferdinand “Bongbong” Marcos Jr., however, has yet to announce whether the excise tax will be suspended. Meanwhile, the Department of Social Welfare and Development is studying a proposal to provide transport workers with an additional P5,000 in aid. For some drivers, however, lowering fuel prices would be more helpful than additional cash assistance. “Hindi na po sana 'yun. Mas maganda mabawasan yung presyo ng gasolina kaysa sa tayo ay puro ayuda,” motorcycle taxi driver Jeffrey de Belen said. (I'd rather see gasoline prices go down than have the government keep giving us financial aid.)— Jean Mangaluz/MCG, GMA News