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Motorists face no reprieve as another round of steep fuel price hikes is expected on Tuesday, September 15, with gasoline seen rising by more than P4 per liter and diesel and kerosene by at least P2.
According to the Department of Energy (DOE), the projected increases will push premium gasoline, diesel and kerosene further above P100 per liter at some Metro Manila stations just after similar large adjustments took effect the current week.
In a statement, DOE Oil Industry Management Bureau director Rino Abad disclosed that trading so far pointed to another increase across all three petroleum products.
“Let’s expect another increase next week. For diesel and kerosene, it is relatively smaller, almost half of last week’s level. Gasoline remains on the higher side, almost within the same range as last week,” Abad stated in a radio interview.
“Asahan natin na may increase pa rin next week. Ang diesel and kerosene, medyo maliit na, halos kalahati no’ng last week. Itong gasolina ay may kataasan pa rin, halos kapareho pa rin ng range nung last week,” pahayag ni Abad sa panayam sa radyo.
Based on prevailing Metro Manila pump prices after the September 8 adjustment, another increase of around P4 will push the highest gasoline prices to roughly P106 per liter.
Premium diesel, which already sells for more than P100 per liter at some stations, will rise to around P104 while kerosene could reach roughly P103 to P138 per liter depending on the station.
Abad, however, cited that the estimated increases remain preliminary as oil companies typically announce final adjustments on Monday after accounting for the full week’s movements in international fuel prices and the peso-dollar exchange rate.
He accounted the adverse de elopment to escalating tensions around the Red Sea, which are adding another risk to oil markets that already have been strained by disruptions around the vital supply route through the Strait of Hormuz.
Iran-backed Houthi forces this week seized the strategic Yemeni port city of Mokha near the Bab el-Mandeb Strait, raising concerns over shipping through the major route connecting the Red Sea to the Gulf of Aden and, farther north, the Suez Canal.
The Bab el-Mandeb is an important passage for energy shipments and other trade between Asia, the Middle East and Europe. Its strategic importance has grown as traffic through the Strait of Hormuz has faced disruptions amid the conflict involving Iran and the United States.
The Houthi advance has heightened concerns that disruptions could spread to another major maritime chokepoint.
Reuters reported Friday that Brent crude had climbed to nearly US$110 a barrel after surging about 6 percent in the previous session amid worries over supply routes in both Hormuz and the Red Sea.