Fuel prices expected to soar P3-5 per liter this week

The story of fuel prices has been hike after hike. In the previous month, we have reported that a total of 10 price hikes were recorded since November 2021, totaling Php 11.25 per liter.

Fuel prices could increase by Php 3 to Php 5 this week

As for this week, the challenge continues as the Department of Energy (DOE) sees another round of possible fuel price hikes. Gasoline products are expected to increase by Php 3.60 to Php 3.80 per liter, while a price hike of around Php 5.30 to Php 5.50 per liter is projected for diesel products. Kerosene will also likely get about Php 4.10 price increase.

Part of the reason behind the expected increase in fuel prices is the ongoing conflict between Russia and Ukraine. Since Russia is the world’s second-largest oil producer, the economic sanctions the country is facing will disrupt oil prices globally. This will affect the Philippines as well, even though most of our oil supply is from Saudi Arabia since the Middle Eastern nation could be forced to supply markets previously served by Russia, increasing demand.

The price of Brent crude oil per barrel is at USD 112 (or around Php 5,826), which is a significant increase from the USD 100 per barrel price last week. If this trend continues in the oil industry, the Mean of Platts Singapore reports that the crude oil price can reach USD 120 per barrel.

An increase in minimum fare could also happen

In response to the recent hike in fuel prices, the Department of Agriculture (DA) will distribute fuel subsidies amounting to Php 500 million to farmers and fishermen this March. The DA discussed the guidelines for the distribution of fuel subsidies with the Department of Budget and Management (DBM).

The surge of fuel prices could also affect commuters in the upcoming weeks as the Liga ng mga Transportasyon at Operators sa Pilipinas (LTOP), a transport group, filed a petition to raise the minimum fare to Php 15. A hearing for this petition has been set for March 8 as per the Land Transportation Franchising and Regulatory Board (LTFRB).

Catch the latest fuel price reports at Philkotse.com.