Diesel prices could rise by more than P12 per liter next week

With motorists still reeling from the shock of Tuesday’s fuel price increase (as much as Php 5.85 per liter), there’s even worse news coming everyone’s way, especially for those dependent on diesel fuel. 

Motorists have been warned of a bigger fuel price increase [Image: PH Fuel Watch Facebook page]

A Facebook post by price monitoring watchdog PH Fuel Watch claims that projected fuel price adjustments for March 15, 2022, will be even more drastic. According to the group, gasoline prices are expected to rise by Php 8.30 per liter, while diesel prices will climb by a staggering Php 12.80 for every liter at the pumps. 

PH Fuel Watch says that the figures are based on estimates by Mean of Platts Singapore (MOPS), used as the benchmark for most refined oil product prices in the Asian market. The assessment process used by MOPS determines the value of oil-based commodities between 15 and 30 days in advance. 

These estimates remain unverified as of this writing, with PH Fuel Watch mentioning that prices are still subject to change depending on developments in the world market. Fuel prices in the Philippines have been on an upward trend since the start of 2022, recently aggravated by Russia’s invasion of Ukraine in February. 

Industries such as construction stand to be affected by adjustments in diesel prices

An impending price adjustment of this scale is expected to have a significant effect on industries that use diesel such as mass transportation, construction, and shipping. This will translate to price increases on basic commodities, utilities, and services, reaching even those who do not own vehicles of their own. 

Transport groups have already filed a petition to raise the minimum fare for public utility jeepneys from the current Php 9 to as much as Php 14 in view of the successive oil price increases. However, the Land Transportation Franchising and Regulatory Board (LTFRB) has set these aside in the meantime, pending its resolution on the request for a provisional increase of Php 1. 

Transport groups have filed a petition for fare adjustments

Calls to suspend the current excise tax on fuel have intensified in light of recent developments. In November 2021, the House of Representatives Ways and Means Committee approved House Bill 10438 which aims to reduce or suspend excise taxes on petroleum products for six months. 

The Department of Finance (DOF) earlier warned against suspending the excise tax on fuel, saying that the move will reduce the revenue needed for COVID-19 recovery measures.     

Be updated on industry developments at Philkotse.com.