Gasoline prices could reach P100 per liter, DOE Secretary says

The Department of Energy (DOE) broached the possibility of gasoline prices hitting Php 100 per liter, depending on the movement of oil prices in the world market. 

Every drop of that precious liquid is going to cost more in the following days

This was the observation made by Energy Secretary Alfonso Cusi in a press briefing Tuesday, according to an Inquirer report. “Depende kung how much it will go up in the world market. Kasi nga ang price ngayon…is already at 125 (dollars) per barrel, Dubai price. Pero ang ating presyo ng ating retail at pump price natin ngayon is already breaching 70 (pesos),” he said. 

(It depends on how much it will go up in the world market. The price now is at 125 dollars per barrel, Dubai price. But our retail and pump prices right now is already breaching 70 pesos)

The latest round of adjustments has seen gasoline prices rise by more than Php 3 per liter. Asked about the prospect of gasoline eventually arriving at Php 100 per liter, Cusi replied that the scenario is not unlikely. “Kung sa pwede, pwede, depending on how high it will hit in the world market, which we are all hoping and praying na hindi mangyari.”

(Regarding the question if it is possible, it is possible, depending on how high prices will hit in the world market, which we are all hoping and praying will not happen). 

World oil prices have spiked in response to economic sanctions imposed on Russia  

The ongoing conflict between Russia and Ukraine has resulted in U.S.-led economic sanctions imposed on the former, with bans on imports of oil and gas among these. Russia accounts for 7 percent of the world’s oil supply, translating to 7 million barrels daily.

According to the Organization of Petroleum Exporting Countries (OPEC), no other country in the world so far can match this capacity. The shortfall has placed the burden on other oil-producing nations to shoulder the increased demand, driving prices upward. OPEC and its allies, known as OPEC+, have so far refused to increase oil production.  

“We are not lacking in supply given that we source our crude oil requirements primarily from the Middle East, and finished products from Asia-Pacific,” Cusi adds, noting that the effect of the Ukraine crisis on international oil markets has an impact on local prices which have been on the rise since 2022 started.  

Oil companies are experiencing higher importation costs

Cusi earlier met with oil companies in the country to discuss the successive price hikes of oil and petroleum products. According to DOE-Oil Industry Management Bureau Director Rino Abad, oil companies have not seen a supply disruption yet, although they are already dealing with increases in importation costs.     

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