Petroleum pump prices could hit P100/liter if hikes continue, DOE says

Pump prices of petroleum products could hit P100 per liter should the weekly increases continue due to a mix of factors, the Department of Energy (DOE) said Monday.

According to Energy Undersecretary Gerardo Erquiza Jr., the increase to P100 per liter is possible, but this is unlikely to happen in a single weekly increase.

“Kung based sa isang dramatic extreme reason, bigla na lang aangat at tataas, hindi naman po (aabot ng P100),” he said during the Laging Handa virtual briefing.

“Pero ang nangyayari dito, nagpapatong patong patong, may posibilidad ‘yan kung tuloy tuloy na bawat araw, bawat linggo ay tumataas. Pero ‘yung biglaan ho ang pag-angat at pagtaas ng P100, ‘yun ho ay hindi naman mangyayari most likely,” he added.

(If the price will suddenly increase due to one dramatic extreme reason, it will not hit P100. But what is happening here is a compounded mix of factors, it is possible if price increases will continue everyday, every week. But the suddenly increase to P100, that is unlikely to happen.)

Oil firms announced a price increase that will take effect on Tuesday — gasoline by P0.80, diesel by P3.10, and kerosene by P1.70 — marking the third straight week of increases.

The latest data available from the Department of Energy indicate that the year-to-date adjustments stand at a net increase of P28.70 per liter for gasoline, P41.15 per liter for diesel, and kerosene by P4.85 per liter as of June 14, 2022.

Data from the agency also show that gasoline prices in Metro Manila have reached as high as P91.90, diesel to as high as P94.90 per liter, and kerosene as high as P97.34 as of June 14, 2022.

Erquiza said this week’s increase is due to the appreciation of the US dollar, along with the sustained production of diesel even with higher demand.

“Kahit na sabihin nating dumadami ‘yung supply ng krudo pero ‘yung manufacturing level ng diesel halos pareho lang ho,” he explained.

(Even if we say that the supply of crude is increasing, the manufacturing level of diesel is almost the same.)

Erquiza also renewed calls for the amendment of the Oil Deregulation Law, which DOE has repeatedly called for, along with Malacañang.

He noted, however, that any amendments to the law may be difficult to pass before the end of the term of President Rodrigo Duterte later this month.

The House of Representatives’ committee on energy already approved amendments to the law, institutionalizing the country’s minimum inventory requirement and pushing for the unbundling of domestic prices.

For its part, the Land Transportation Franchising and Regulatory Board (LTFRB) earlier this month said it is set to roll out the second tranche of the P5-billion fuel subsidy program for drivers of public utility vehicles late this month or early July.—AOL, GMA News