Diesel, gasoline prices in NCR hit P100 mark

Diesel and gasoline prices in Metro Manila again hit the P100 mark, rising to as much as P102 per liter as the Middle East fighting continued and oil companies hiked fuel prices by about P5 per liter on Tuesday.

“We have an oil price hike in domestic petroleum prices driven largely by higher international oil prices following renewed tensions affecting energy flows through the Middle East. The depreciation of the Philippine peso against the US dollar has also added pressure on domestic pump prices because we buy them in dollars, not in Philippine peso,” Energy Secretary Sharon Garin said in a media briefing on Monday.

The Department of Energy (DOE) said local retailers can impose price hikes by as much as P4.69 per liter for gasoline.

Diesel prices also rose by up to P5.18 per liter while kerosene had the biggest increase, reaching P5.58 per liter.

Before these price increases, the prevailing retail prices in the capital region were at P66.06 to P97.35 per liter for gasoline; P75 to P97.50 for diesel; and P95.30 to P130.52 for kerosene.

Rino Abad, director of the DOE’s Oil Industry Management Bureau, said the range was “quite elevated” already, with diesel and gasoline prices approaching the P100-per-liter level.

He noted that the peak of the price surges happened in April, hitting as high as P155 per liter, during the intensified bombings between the United States and Iran—apart from the fighting between Israel and Hezbollah in Lebanon.

Amid challenges in obtaining a fresh supply of fuel, the Philippines is ramping up efforts to build the country’s fuel reserve system.

The government does not have its own refinery or storage facilities and mandates local fuel companies to hold a certain amount of petroleum products and crude oil under the minimum inventory requirement.

In May, Japan’s Ministry of Economy, Trade and Industry committed to help the Philippines launch feasibility studies on the project and provide capacity building.

According to Abad, the DOE has already submitted a concept note to its counterparts.

He added that oil giant Saudi Aramco has floated its plan to build an export hub in the Philippines, where crude oil will be stored.

Abad said Petron Corp., the country’s sole refiner, can buy crude supply from Aramco’s facility. INQ