Philippines Faces Another Fuel Price Surge, Raising Concerns for Households and Economy

MANILA, Philippines – Fuel prices are set to rise again in the Philippines starting Tuesday, September 22, continuing a trend of pump price increases driven by tight global supply and ongoing tensions in the Middle East impacting petroleum markets. During a press conference on Monday, September 21, Energy Secretary Sharon Garin announced the following fuel price adjustments for the week of September 22 to 28: Gasoline – increase of P4.88 per liter Diesel – increase of P8.82 per liter Kerosene – increase of P6.47 per liter The adjustments will take effect on Tuesday, September 22. Before the latest adjustment, the Department of Energy’s (DOE) price monitoring showed common retail prices in Metro Manila at P91.40 per liter for gasoline RON95, P83.10 per liter for gasoline RON91, P94.50 per liter for diesel, and P124.50 per liter for kerosene for the week of September 15 to 21. The latest increase follows last week’s big fuel price hike, when gasoline prices rose by P5.68 per liter, diesel by P4.31 per liter, and kerosene by P4.62 per liter. The continuing increases come as physical fuel supplies remain tight despite efforts by Saudi Arabia to restore some of its export capacity. Saudi Arabia has been working to bring part of its East-West pipeline capacity back online and offer additional cargoes to Asian refiners, helping ease some of the most severe price pressures seen earlier in the week. But supply risks remain. Vessel traffic through the Strait of Hormuz continues to be constrained, while continuing tensions involving Saudi Arabia and Yemen’s Houthis threaten energy infrastructure and shipping through the Red Sea. The government, meanwhile, is considering another round of fuel tax relief. Last week, the DOE formally certified that the one-month average price of Dubai crude reached $99.41 per barrel from August 13 to September 11, well above the $80-per-barrel threshold that allows the government to consider suspending or reducing excise taxes on petroleum products. (READ: DOE sees ‘no signs’ oil prices will fall as excise tax relief goes on table) The Development Budget Coordination Committee is still finalizing its recommendation on possible excise tax relief, which will be submitted to President Ferdinand Marcos Jr. for approval. The Department of Finance earlier said it was prepared to propose a suspension of excise taxes on liquefied petroleum gas and kerosene. Local pump prices also remain far above levels seen before fighting involving Iran and US-Israeli forces broke out on February 28. In the last full week before the conflict, DOE data showed common retail prices in Metro Manila at P56 per liter for gasoline RON95, P54.70 per liter for gasoline RON91, P55 per liter for diesel, and P83.47 per liter for kerosene. The Philippines is a net importer of petroleum products, making local pump prices vulnerable to global oil price swings, foreign exchange movements, regional refined fuel prices, and disruptions in international supply routes. – Rappler.com