P100 per liter fuel price unlikely according to DOE

The Department of Energy (DOE) is confident that fuel prices will not reach Php 100 per liter at least for this year, despite a series of mostly upward price adjustments in recent months. 

Fuel prices will not reach Php 100 per liter this year, at least according to the DOE

This was according to Energy Undersecretary Gerardo Erguiza during a Malacañang press briefing Tuesday, the same day that diesel and gasoline prices jumped by Php 6.55 and Php 2.70 per liter, respectively. “There are no drastic factors…Under the situation right now and existing circumstances, we don’t see that it will reach Php 100 [per liter],” he said. 

Erguiza’s statement was in stark contrast to outgoing Energy Secretary Alfonso Cusi’s warning in March that motorists could end up paying Php 100 per liter of gasoline. However, Cusi qualified that this depends on how far world oil prices will rise, citing a price of $200 (Php 10,581) per barrel as the likely trigger. As of this writing, pricing for international Brent crude has breached $120 (Php 6,345) per barrel.   

Energy Secretary Alfonso Cusi warned of the increase if world oil prices reached $200 per barrel

Prices of petroleum products have generally gone up since the start of 2022, aggravated in part by Russia’s invasion of Ukraine in February. The biggest increase so far occurred on the week of March 15, when diesel prices shot up by a stratospheric Php 13.15 per liter while gasoline prices hiked by Php 7.20 per liter.    

Erguiza reported that the DOE has been asking oil companies to provide discounts to consumers, as government agencies focus on distributing fuel subsidies to other affected sectors such as transportation, fishing, and farming. 

The fishing industry in the country’s tuna capital, General Santos City, has warned that several businesses could stop operations due to rising fuel costs, potentially affecting prices of fish. Local industry leaders are proposing several solutions to address the situation, one of which is the suspension of excise taxes on fuel. 

The government says that distributing fuel subsidies to affected sectors was more sustainable than suspending excise taxes on fuel

This was seconded by Cagayan de Oro Representative Rufus Rodriguez, who last week vowed to re-file a proposal to temporarily stop excise taxes on petroleum products when the incoming Congress starts on July 25.

However, Erguiza reiterated the government’s position that removing excise taxes imposed on fuel is not ideal, claiming that the move will benefit even the rich. 

Expect more industry updates at Philkotse.com.