Third straight fuel price hike looms week of January 31

Motorists will need to tighten their belts a little more this week as price increases are expected across all petroleum products at the pumps.

Gasoline users face up to a Php 1.50 per liter increase this week 

On its Facebook page, fuel price watchdog PH Fuel Watch advised the public that diesel prices are set to be from Php 0.85 to Php 1.15 per liter more expensive beginning Tuesday, January 31. Meanwhile, gasoline prices will also rise between Php 1.30 and Php 1.50 per liter. Final prices will depend on the gas station and location. 

In an interview over TeleRadyo, Department of Energy (DOE) Assistant Director Rodela Romero said that the coming increase is unusual. 

“Historically na itong panahon na ito dapat pababa na dahil pagkatapos ng Pasko, nawala na ang [demand],” she said. “Unfortunately, may ibang factors pa noong nakaraan kaya bumababa dahil sa zero COVID policy ng China.”    

(Historically, during this time after the Christmas season, prices go down because of reduced demand. Unfortunately, there are other recent factors that drove it down because of China’s zero COVID policy.) 

The DOE says that the upward price adjustments are unusual for this time of year 

“Pero kung ngayon, despite na may virus sila, nag-open up na ang economy nila so tumaas ang demand ng petroleum products,” Romero added. 

(But now, despite the presence of the virus in China, they have opened up their economy that’s why demand for petroleum products has grown.) 

Despite a report by the World Health Organization revealing over 250,000 confirmed COVID-19 cases in China during the first week of January, the country has largely abandoned its zero COVID policy following protests both in the mainland and overseas. 

Asked if fuel prices are on their way to breaching the Php 80 per liter price at the pumps, however, Jetti Petroleum President Leo Bellas replied in the negative.  

Former Energy Secretary Alfonsi Cusi previously warned that fuel prices could reach Php 100 per liter

“Sa tingin namin, mukhang ‘di naman aabot nang ganun kasi may resistance. Kasi ‘yung pagtaas ng crude, mabilis pagsirit, pero nag-stagnate din eh,” he said.

(We think that it won’t reach that level on account of resistance. Price increases for crude oil are quick, but eventually stagnate.)  

Gasoline and diesel prices reached their highest recorded prices at Php 82 and Php 85 per liter respectively in June 2022, largely attributed to supply disruptions on account of Russia’s conflict with Ukraine. This followed the DOE's warning that fuel prices could potentially reach Php 100 per liter. 

Be updated on more fuel price movements at Philkotse.com.