Motorists will still bear the brunt of sharp fuel price hike this week, even as the Department of Energy (DOE) and oil firms agreed to stagger the increases to make them more manageable for consumers.
Following a meeting with government officials on Monday, oil companies agreed to implement the hikes in at least two tranches on a 50:50 basis, though firms may opt to divide the increases further.
Without the staggered rollout, pump prices would have risen by P3.50 per liter for gasoline, P5.20 for diesel, and P4.80 for kerosene in full on Tuesday morning.
“Our dialogue with industry players today reflects our shared commitment to balance economic realities with the need to shield our people from sudden price shocks, and we are pleased to report that they have responded positively to our request,” DOE officer-in-charge Sharon Garin said.
“We have also urged oil companies to increase the number of their retail stations offering fuel discounts to the transport sector,” she added.
In pacing the price adjustments, Shell and Seaoil will implement the first tranche of price hikes tomorrow morning, raising gasoline by P1.75 per liter, diesel by P2.60, and kerosene by P2.40. The second round of increases will follow on Thursday, 26 June.
Clean Fuel, on the other hand, will also raise prices on Tuesday by P1.75 per liter for gasoline and P2.60 for diesel, with the second tranche to be implemented on Friday, 27 June to “provide motorists with more leeway.”
Despite the escalating tension in the Middle East, where the world’s leading fuel producers are situated, the DOE said the country has an adequate domestic supply as it strictly enforces inventory requirements and prepares safety nets, including fuel subsidies, in coordination with other agencies.
Energy Undersecretary Alessandro Sales said the agency is closely monitoring global oil benchmarks and foreign exchange trends, while also encouraging firms “to exercise prudence in passing on cost changes to consumers.”
“Much of the recent price volatility is being driven not by actual supply disruptions, but by speculative trading due to geopolitical uncertainties,” Sales said.
As of Monday, average pump prices stand at P55.90 per liter for gasoline, P53.40 for diesel, and P70.22 for kerosene. Meanwhile, Dubai crude averaged $75.16 per barrel, still far from the $80 threshold set to trigger fuel subsidy distribution.