THE onslaught of bad news is coming endless for consumers, as another wave of financial pain will further squeeze their pockets with anticipated price hikes at the gas pumps next week.
According to the oil companies, the price of gasoline products will rise by P0.45 to P0.85 per liter; while diesel prices will also escalate by P0.30 to P0.70 per liter.
For kerosene, which is the base fuel for the aviation sector and also a major commodity used by households and other key industries, its price is expected to increase by P0.40 to P0.80 per liter.
If cost adjustments would be anchored purely on the outcome of trading as indexed on the Mean of Platts Singapore (MOPS), the calculated price adjustments have been: P0.466 per liter for gasoline; P0.312 per liter for diesel and P0.405 per liter for kerosene.
Another market fundamental being watched closely is the depreciating value of the Philippine peso versus the US dollar – because that too, is a major determinant in fuel price fluctuations.
The forthcoming round of adjustments on Tuesday (May 28) is already the 22nd week of price seesaw that consumers have been experiencing at the domestic pumps since the start of the year.
Based on monitoring of the Department of Energy (DOE), price swings since January already summed up to net increases of P7.15 per liter for gasoline and P4.45 per liter for diesel; while kerosene prices had been down by P1.35 per liter.
As noted by industry experts, a major factor that has been lifting sentiments in markets is the portended outcome of discussions, especially on prospects of maintaining production cuts, at the forthcoming meeting of the Organization of the Petroleum Exporting Countries and ally-producers (OPEC+) this June.
While international benchmark Brent crude had dipped to $81 per barrel as of Thursday (May 23), it was noted that Asian market fundamentals – including China’s demand hike as well as the reported curtailments of some refineries, had generally pulled prices higher.
In the Philippine market, policy changes will be introduced for the domestic industry by October this year – with the prescribed increase in biofuel blends both to diesel and gasoline products.
The energy department announced that the coco methyl ester (CME) blend for diesel products will rise to 3.0% October this year; then 4.0% in October 2025 and will escalate further to 5.0% by October 2026.
For gasoline, the blend by volume would rise to 20% by October, but the government prescribed that such must only be done on voluntary basis.
The price impact outcomes will be mixed for the mandated hike in biofuel blends – with the higher CME blend expected to result in price hikes; while added ethanol could reduce gasoline prices. (Myrna M. Velasco/ MB)
