Fuel prices to climb in the Philippines; gasoline may fluctuate, diesel and kerosene seen up by over P1/liter

The Department of Energy (DOE) in the Philippines has released its forecast for fuel price adjustments this week, indicating that diesel and kerosene prices are expected to increase by over P1 per liter, while gasoline prices may either rise or fall. These adjustments are set to take effect from Tuesday, July 7, to Monday, July 13. According to the DOE's latest inventory report, the country's total oil and fuel supply is expected to last for 46.50 days. Specifically, gasoline supply is estimated to last 43.72 days, diesel for 43.81 days, and kerosene for a substantial 177.50 days. Jet fuel supply is estimated at 84.93 days, fuel oil at 36.45 days, and liquefied petroleum gas (LPG) at 42.28 days. DOE Undersecretary Alessandro Sales explained that current pump prices have yet to return to pre-war levels primarily because the Philippines remains heavily dependent on imported oil and fuel supplies. "Although Dubai crude [prices] went back to its pre-war prices, we are still paying a premium for diesel. The price of diesel is 22 dollars higher per barrel compared to its pre-war price. So it reflects on our pump price," Sales stated. The anticipated rise in fuel costs could have ripple effects across the Philippine economy, particularly impacting transportation expenses and the general cost of goods. The nation's significant reliance on imported energy sources makes it susceptible to fluctuations in global oil markets. This situation could add further strain to households reliant on remittances from overseas Filipino workers and industries sensitive to transport costs, such as the Business Process Outsourcing (BPO) sector.