The Department of Energy (DOE) warns the public that pump prices could rise to Php 86.72 per liter for gasoline and Php 81.10 per liter for diesel, if the uptrend in world oil prices continues.
There's no end in sight yet for the series of oil price hikes
This was the scenario given by Energy Undersecretary Gerardo Erguiza Jr. at the Senate Committee on Energy’s hearing Monday over how the country’s oil supply and prices are being affected by the Russia-Ukraine conflict.
“This is not just a problem of the executive department. This is a problem of course that will be a problem of all sectors in the government,” he said. “We have a framework where we have the objective of fair pricing, but still we are unable to do that.”
Using the Dubai crude price of $80 per barrel as a benchmark, the DOE notes that it has now reached $120.34 per barrel as of March 14, 2022. “The DOE has been strictly monitoring the sufficiency of supply, the quality of what’s being sold in the market,” Erguiza added. “We want to assure the public that our supply is sufficient, and what is really the problem is the cost of fuel.”
Fuel price discounts have been proposed for motorists
Local fuel prices at the pumps have climbed steadily since the start of 2022. Unioil Petroleum Philippines forecasts that gasoline prices could climb by as much as Php 7 per liter and diesel by Php 12.30 per liter for the period of March 15 to 21.
During the same Senate hearing attended by representatives of oil companies and other stakeholders in the power industry, the DOE presented its proposed steps to mitigate the effects of the oil problem. Among these are promotional fuel discounts between Php 1 and Php 4 per liter for consumers and Php 500 million in fuel discounts for farmers and fisherfolk.
The government has so far refused calls to regulate oil prices
The agency is also proposing subsidies for public transport drivers through the Pantawid Pasada program, recommending to double the current budget of Php 2.5 billion budget to Php 5 billion.
However, the DOE has shot down calls for oil price regulation, citing the Philippines’ dependence on international selling prices as determined by oil-exporting countries. It adds that the government cannot afford to subsidize the substantial losses that will result if global oil prices drop.
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