Filipino motorists will have to brace for significant cost burden in their fuel budgets this week as the price of gasoline will rise by P1.60 per liter while diesel prices will likewise climb by P1.35 per liter.

The oil companies similarly stated that kerosene prices will go up by P1.20 per liter, as demand for this commodity is seen gathering pace in the coming days and weeks primarily its utilization as base for aviation fuel with prospects of increased air travel given the fact that fears on the impact of COVID-19 Omicron variant is already waning.

The industry players are increasing their prices on Tuesday, Dec. 14, and as of press time, the oil companies that already sent notices on the price hikes include Pilipinas Shell Petroleum Corporation, Cleanfuel, Seaoil, PetroGazz and Chevron Philippines. Other industry competitors are anticipated to follow.

This is the first upswing in prices this December and it followed series of five-week price rollbacks when global oil prices plummeted to the $68 to $69 per barrel because of uncertainties posed by the new coronavirus strain that originated from South Africa. Global prices bounced back to $75-$76 per barrel in last week’s trading.

The upticks in oil prices will not serve as a ‘favorable development’ to Filipino consumers, especially so since many are preparing for Christmas celebrations including on their travel plans for the holiday break.

As projected by market experts, international oil prices may continue to rise in the coming weeks as people’s mobility will be restrained less; and economic recovery plans will carry on in many parts of the world.

In a separate industry development, Pilipinas Shell announced over the weekend that it will “pay under protest” the P3.49 billion worth of excise taxes and value added taxes (VAT) being imposed by the Bureau of Customs (BOC) for its previous alkylate importations.

The company conveyed that such decision was arrived at on account of the demand letter served by the Port of Batangas that was following the dissolution of the previously issued temporary restraining order (TRO) by the Supreme Court and the case has also been ordered to be remanded to the Court of Tax Appeals.

“This will allow us to continue to provide to our customers and to the general public who rely on our products and mindful of the thousands of Filipinos whose livelihood depends on our ability to maintain our operations,” Shell said.

The taxes to be paid by Pilipinas Shell ‘under protest” with the Customs bureau will account for its alkylate importations, which were then used as blending components on its refinery production within the years 2014 to 2020.

The oil firm qualified though that “the case whether alkylate is subject to excise tax is yet to be decided by the courts.”