After more than two months of incessant price hikes, consumers will be in for a respite with diesel and kerosene prices on rollback although gasoline price is expected to continue to rise significantly.
Based on last week’s trading outcomes in the world market, diesel prices will decline by P0.45 to P0.55 per liter; and kerosene will be down by P0.35 to P0.45 per liter.
But prices of gasoline products are expected to increase by P1.00 to P1.10 per liter. For liquefied petroleum gas (LPG), which is a basic commodity for household cooking, consumers will also have to brace for continued increase in prices to be enforced by November 1, according to industry players.
The string of upticks in oil prices had extremely perturbed several segments of the Philippine economy because of its inflationary impact – with the public transport sector going up to the extent of seeking at least P3.00 hike in minimum fare.
The continuing price hikes in fuel products has prompted the government to grant P1.0 billion worth of fuel subsidy to public utility jeepneys and other critical sub-sectors in public transport to avert transport fare hikes.
Global industry experts indicated that the slight price softening for some oil commodities may just be temporary and pricing trends may revert to upswings again in the coming days and weeks as demand for commodities are still accelerating.
Many countries have high demand for winter heating; while others would be needing more oil to fuel their manufacturing sector and other economic activities as they widely reopen following the affliction of the Covid-19 pandemic.
In the Philippines, the intensifying clamor is for oil companies to be more transparent in their pricing, so the consumers can be properly apprised on the cost elements they have been paying for at the pumps.
The Department of Energy (DOE) is already lobbying for amendment to Republic Act 8479 or the Downstream Oil Industry Deregulation Act, but it remains to be seen if this can still be tackled by the 18th Congress given the nearing campaign period for the May 2022 elections.
In the proposed fuel cost unbundling, the energy department is primarily seeking that it be granted with ‘subpoena powers’ to fully discipline industry players, who are implementing higher-than-expected price adjustments.