The price of fuel may go as high as P77 per liter for gasoline and P73 for diesel this year according to Gerardo Erquiza, undersecretary of the Department of Energy (DOE) citing analysts report.
This developed as pump prices are up for the ninth straight week after Brent crude rose above $105 per barrel last week, the highest since 2014, mainly due to Russia’s attacks on Ukraine.
Erquiza also cast blame on Congress for not acting on its requests as early as October 2021 – at a time when oil prices were also increasing – to amend the Oil Deregulation Law as well as to suspend the collection of excise tax on fuel products.
At the Laging Handa public briefing yesterday, Arquiza said based on projections from the Mean of Platts Singapore, an average set of oil product price assessments, the price of oil per barrel may reach as much as $120 this year.
Erguiza said this will push prices of gasoline to about P77 per liter and diesel to P73 per liter.
The DOE said as of February 24, the latest average Manila price per liter of gasoline (RON95) stood at P65.05, diesel at P57.45 and kerosene at P62.84.
Pilipinas Shell raised per liter prices by P0.90 of gasoline, P0.80 of diesel and P0.75 of kerosene.
Clean Fuel hiked per liter prices of gasoline by P0.90 and diesel by P0.80.
The DOE said as of February 22, year-to-date adjustments of petroleum products stood at a total net increase of P8.75 per liter for gasoline, P10.85 per liter for diesel and P9.55 per liter for kerosene.
Reuters reported as of Friday last week, Brent crude futures for April contract settled at $97.93 a barrel while the May contract closed at $94.12 per barrel. US West Texas Intermediate ended at $91.59 for each barrel.
Despite the sharp increase, analysts said the movement was tempered by the assurance of the United States that Russia’s oil and gas exports will not be targeted by sanctions.
As payment terms are still being clarified, buyers are struggling to secure guarantees at Western banks or find ships.
Russia is the world’s second-largest crude producer and a major natural gas provider to Europe.
The US government said it is working with other countries on a combined release of additional oil from their strategic crude reserves.
The Organization of the Petroleum Exporting Countries and producers including Russia are set to meet on Wednesday.
OPEC is expected to stick to its plan to increase output by 400,000 barrels a day in April.
At the public hearing, Erguiza said the DOE in October last year wrote lawmakers seeking the suspension of the collection of excise tax on fuel. At that time international prices of crude hit $80 per barrel.
“(The proposals were) heard in the Lower House thrice and came out with a technical working group report but the session were hit by the recess so it is now pending in the Congress. At the Senate, no hearings were set,” Erguiza said.
