After voting for their next leaders, Filipino consumers will have to face hefty price hikes of P4.20 per liter for gasoline and diesel products that will be reflected at the pumps on Tuesday, May 10.
Kerosene, a base for aviation fuel, will also climb by P5.85 per liter which has been comparatively higher than the calculated adjustment for the commodity if reckoned on the Mean of Platts Singapore (MOPS), the pricing reference of the deregulated downstream oil sector.
Media questions had been raised to the Department of Energy (DOE) on why kerosene prices had an upswing higher than calculations, but there was no response yet as of this writing.
The industry players that already announced their price hikes had been Pilipinas Shell Petroleum Corporation, PetroGazz, Cleanfuel and Seaoil; while their rival-firms are anticipated to match the cost adjustments already enforced.
This week’s price upticks at the domestic pumps had been mainly traced to the fresh wave of rally in global oil prices triggered by ‘market fears’ as well as geopolitical events that may trigger supply disruptions.
The factors which ignited radical spikes in international prices had been the targeted comprehensive ban on Russian oil by the European Union; as well as the propounded legal suits to be filed against the Organization of the Petroleum Exporting Countries (OPEC) and its ally-producers.
As of Monday (May 9) trading, international benchmark Brent crude was roughly steady at US$111 to $112 per barrel, but there are no clear indications yet that world oil prices would be easing soon, especially with the niggling Russia-Ukraine war.
The continuing devaluation of the Philippine peso versus the US dollar has not also been helping, given that foreign exchange rate is another element influencing cost movements at petroleum pumps.
The Philippines is highly vulnerable to the very volatile prices of oil in the world market, hence, the major candidates in the country’s elections had promised to address this particular dilemma that have been frequently tormenting consumers.
Presidential frontrunner Ferdinand “Bongbong” Marcos Jr., in particular, has presented an option of reviving the Oil Price Stabilization Fund (OPSF) so this could serve as price-cushion mechanism to cost spikes; while his major rival, Vice President Leni Robredo has been pushing for more investments in indigenous oil and gas exploration so the country can reinforce its energy security agenda.
There has always been plan for the country to set up its own strategic petroleum reserve (SPR) or oil stockpiling – but this proposal, even the conduct of comprehensive feasibility study, never really progressed across administrations.