Photo courtesy of Joan Bondoc/ Philippine News Agency (PNA)
Amid a looming increase in pump prices next week, a ₱10 fuel subsidy for jeepney and utility vehicle drivers is currently being implemented with the government spending ₱160 million per month.
According to Land Transportation Franchising and Regulatory Board (LTFRB) chairman Vigor Mendoza II, if the fuel subsidy is expanded for all public utility vehicles, the government would have to shell out around ₱2.4 billion monthly.
“The subsidy that we will give is huge—₱2.4 billion a month. We could do a lot more tricks with that money compared to increasing fares,” Mendoza noted.
Prior to this, the Department of Energy (DoE) announced that gasoline and diesel prices in Metro Manila expected to surge beyond ₱100 per liter.
In a press briefing, DoE director Rino Abad told reporters that fuel prices could see an “extra-large” adjustment on July 21, with increases potentially hitting over ₱10 per liter.
Abad disclosed that they are set to hold a meeting today to discuss the reinstatement of stricter fuel pricing measures amid renewed geopolitical tensions in the Middle East but it remains unclear whether oil companies will be invited to participate in the meeting.
After the first three trading days, Jetti Petroleum president Leo Bellas indicated potential price hikes of ₱9 to ₱10 per liter for diesel and ₱3.50 to ₱4.50 per liter for gasoline. The projections may still rise or fall, with two trading days remaining.
“World oil prices have increased significantly this week due to the renewed hostilities in the Middle East, rekindling supply concerns as vessel traffic in the Strait of Hormuz declined significantly,” Bellas explained.
This week, diesel prices climbed up by ₱2.62 to ₱4.62 per liter, while the cost of gasoline increased by ₱1 per liter.
Currently, gasoline is sold for up to ₱96.10 per liter in Metro Manila, while premium diesel prices reach as high as ₱90.77 per liter.