Another round of fuel price increases will hit motorists this week, with diesel expected to hike between Php 4.25 and Php 4.50 per liter at the pumps. Gasoline prices will also go up between Php 1.50 and Php 1.75 per liter, while kerosene is expected to be up to Php 4.90 per liter more expensive.
Diesel vehicle owners should brace themselves [Image: PH Fuel Watch FB page]
This was announced by PH Fuel Watch on its Facebook page, citing industry sources, with the price adjustments taking effect on Tuesday, June 14. The fuel price watchdog says that exact prices will depend on the station and location.
These adjusted prices do not yet include foreign exchange and the cost of biofuel components. On Friday, the peso depreciated to Php 53 against the U.S. dollar, the lowest so far this year.
This will be the third consecutive price increase for diesel, which last went down on the week of May 24 by rolling back Php 2.30 per liter. Diesel vehicle owners endured a big-time price hike for the month so far on June 7, when prices climbed by more than Php 6 per liter.
International developments continue to influence local fuel prices, with the European Union (EU) imposing a partial embargo on Russian oil exports on June 8. The sanctions seek to ban seaborne deliveries of crude oil from Russia by December 5, 2022, with refined petroleum following by February 5, 2023.
Russian crude oil deliveries by sea will stop by December 2022
Before the ban takes effect by yearend, the EU has been importing more oil from the U.S., Middle East and West Africa. This has had the effect of increasing demand placed on those sources. Countries such as China that are emerging from COVID-19 lockdowns are also contributing to the supply crunch, driving prices upward.
The Organization of Petroleum Exporting Countries and its allies (OPEC+) have pledged to increase output in July by 648,000 barrels per day or 0.7 percent of global demand. However, this is expected to make little impact compared to the loss of Russian oil, which contributes ten times as much to the global market.
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