Filipino consumers will brace for a "crucifying" historic "price shocks" next week as diesel prices will surge by P11.75 to P11.95 per liter while gasoline prices will equally be on astronomical rise of P7.10 to P7.30 per liter for RON95 gasoline; and P6.85 to P7.00 per liter for RON92 gasoline.
The price of kerosene, which is the base commodity for aviation fuel, will also be on record hike of P9.60 to P9.75 per liter, as culled from the calculation of the oil companies.
With this new round of upticks, the higher-end price range of gasoline products being retailed at domestic pumps will already reach P93 to P94 per liter; while diesel prices will already touch beyond P83 per liter, especially in the provinces where prices are generally higher due to add-on logistics costs.
These ‘super spikes’ in prices will be reflected at the pumps by Tuesday (March 15) based on the routine adjustments being enforced in the oil industry as anchored on the Mean of Platts of Singapore (MOPS) cost swings; but the calculations have not factored in yet the falling value of the Philippine peso versus the US dollar.
Given the massive-scale price uptrends next week, Energy Secretary Alfonso G. Cusi already advanced his appeal to the oil companies if they can stagger the pass-on of increases to ease financial torment overwhelming consumers; but it remains to be seen if this will be heeded.
Prior to this new wave of price hikes, a monitoring report of the Department of Energy (DOE) showed that the series of increases in the past 10 weeks already accrued to P13.25 per liter for gasoline; P17.50 per liter for diesel; and P11.40 per liter for kerosene products.
From last week’s adjustments, the highest prices in Metro Manila logged by the DOE had been at more than P82 per liter for gasoline in the cities of Muntinlupa and Pasay and P86 per liter in the provinces; while the highest for diesel in Metro Manila was at more than P67 per liter in Taguig City; and about P72 per liter in the provinces.
Global oil prices wildly gyrated last week with international benchmark Brent crude swelling to as high as $131 per barrel on Tuesday; while Dubai crude, escalated to historic high of $122 per barrel.
By Wednesday and Thursday trading days, crude prices dived temporarily to the level of $108 to $109 per barrel after Chinese President Xi Jinping’s “call for restraint’ on both camps in the Russia-Ukraine war, but the oil market sentiment in Asia turned gloomy after China’s announcement of oil export ban beyond prescribed quotas for domestic consumption; thus, Dubai crude lingered at over $120 per barrel for at least two trading days.
As of Friday (March 11) trading, Brent crude was hovering at $112 per barrel; while Dubai crude had dropped to $110 per barrel, but that still manifests niggling cost increases that consumers will have to expect when they fill up their vehicles.
To cushion the inflationary impact of rising fuel prices, the government will be extending P5.0 billion worth of subsidy to the public transport sector; while separate P1.1 billion financial assistance will be extended to farmers and fisherfolks so the food chain can also be protected from unwarranted price escalations.
The Philippines is importing more than 90-percent of its fuel requirements, hence, it is highly vulnerable to the unpredictability and extreme price swings of global oil prices. (MMV)