Gasoline to hit P86.72 per liter, diesel at P81.10 if global prices continue to rise -DOE

Local pump prices per liter of gasoline could hit as high as P86.72 and diesel at P81.10 should global prices continue to increase, the Department of Energy (DOE) warned Monday.

Energy Undersecretary Gerardo Erguiza Jr. on Monday noted that global oil prices have continued to increase, and domestic pump prices are seen to climb even further should the uptrend continue.

“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. We have a framework where we have the objective of fair pricing, but still we are unable to do that,” he said during the hearing of the Senate Committee on Energy on the impact of the Russia-Ukraine crisis on Philippine oil supply and prices.

Domestic pump prices have been hiked for the past 10 weeks, with oil firms set to implement a major hike this week citing the global constraints as Russia remains a major exporter.

Unioil Petroleum Philippines over the weekend said in its fuel price forecast for the March 15 to 21 trading week that the price per liter of diesel may skyrocket by P12.20 to P12.30. Gasoline prices, meanwhile, are estimated to surge between P6.80 and P7.00 per liter.

The DOE has indicated the Dubai crude price at $80 per barrel as its benchmark for times of crisis, and the price has since gone up to $120.34 per barrel as of March 14, 2022.

Erguiza said based on the movement in the recent weeks, local pump prices per liter could hit an average as high as P79.39 for gasoline, P75.59 for diesel, and P76.83 for kerosene.

Should the uptrend in the global market continue and Dubai crude oil hits $140 per barrel, this would reflect in domestic prices — P86.72 per liter for gasoline, P81.10 per liter for diesel, and P80.50 per liter for kerosene.

“The DOE has been strictly monitoring the sufficiency of supply, the quality of what’s being sold in the market… We want to assure the public that our supply is sufficient and what is really the problem is the cost of fuel,” Erguiza explained.

Based on the latest data available from the Department of Energy, prices in Metro Manila range from P59.85 per liter (Caloocan) to P84.55 per liter (Muntinlupa) for gasoline, and from P55.20 per liter (Pasig) to P73.39 per liter (Taguig) as of March 10, 2022.

Year-to-date adjustments stand at a total net increase of P13.25 per liter for gasoline, P17.50 per liter for diesel, and P11.40 per liter for kerosene as of March 8, 2022. —KG, GMA News