March 16, 2022

Domestic oil prices set record high; no sign of stopping anytime soon

Oil price hike sets record high this week as domestic oil companies increase their products up to double-digit starting yesterday, March 15.

The Department of Energy (DOE) informed the public that the sudden increase in gasoline, diesel, and kerosene is due to the ongoing war between Ukraine and Russia, further explaining the domino effect that forced retailers to adjust to the world oil price market.

IMAGE from Shell and Unsplash

“Crude oil complex continued the strong uptrend from last week as Russia-Ukraine geopolitical crisis continues to evolve. Even though the international sanctions have largely targeted Russia’s financial system, crude buyers are avoiding Russian barrels as there is growing anticipation among market players that sanctions could be expanded to the energy sector soon,” it said.

Caltex, Cleanfuel, Flying V, PTT Philippines, Petron, Seaoil, and Shell raised their gasoline prices by Php 7.10/liter and Php 13.15/liter for diesel, while Caltex, Flying V, Petron, Seaoil, and Shell also increased kerosene prices by Php 10.50/liter.

Last week, the oil companies implemented a price increase in domestic oil products. Gasoline has increased by Php 3.60/liter, diesel by Php 5.85/liter, and kerosene by Php 4.10/liter.

North Sea Shell’s Shearwater/IMAGE from Shell

With prices soaring high week after week and the National Capital Region (NCR) remains under Alert Level 1, the timing isn’t good as the public needs transportation such as PUVs and SUVs to commute on to their respective offices and sites.

Hence, the oil price hike will hit motorists and eventually put the burden on commuters sooner than later. In addition to the expected fare hike, prices of goods and products might follow anytime soon. And the threat of inflation can disrupt the recovering economy of the country from two years battle of the COVID-19 pandemic.

IMAGE from Unsplash

The energy chief reassured the public that the department is reviewing the pricing policy and pricing formula that are being used, and will also evaluate the fuel value chain as part of its ways to ease oil price hikes.

“We requested for staggered increase. We even requested if they can lessen —the industry take(s) the sacrifice as we have asked our consumers to do conservation, we ask our industry players to sacrifice and take a cut on the industry,” he said.

According to DOE, these resulted in the year-to-date adjustments to stand at a total net increase of Php 13.25/liter for gasoline, Php 17.50/liter for diesel and Php 11.40/liter for kerosene.

Source: Department of Energy and PNA

Written by Cedie Salido