Diesel seen rising P15 per liter, gasoline P7 next week as Mideast conflict continues

MANILA, March 7 ------ Consumers will need to brace themselves for a possible massive hike in the prices of petroleum products next week. As of March 5, based on the first three trading days, here is the equivalent peso per liter jump in finished products based on world market adjustments:

Diesel-P15.00/L increase

Gasoline-P7.00/L increase

Kerosene-P28.00L increase

But there are more trading days left that can reduce or further bloat the price increases.

STAGGERED PRICE HIKES?

The Department of Energy said it is looking at subdividing the increase across several days or weeks instead of implementing it in one blow, to cushion its impact on consumers. Energy Secretary Sharon Garin said the DOE will announce over the weekend how the 'staggered' price hike is going to be implemented by oil firms. Whether it is going to be recovered over several weeks or within 1 week only will be decided by the government and oil firms over the weekend.

Garin has appealed to motorists not to purchase extra supplies or hoard fuel as this will distort the demand and supply balance, which can further affect the local market. Earlier, the DOE said oil firms have an inventory or fuel stock that can last from 1 to 2 months without replenishment. But Garin said oil firms have assured her that ordered shipments are coming already, which can replenish the current supply. Importers source most of their refined fuel products in the region through countries like China, South Korea, Malaysia and Taiwan. Only Petron still buys crude oil as it continues to maintain an oil refinery in Bataan that processes this to diesel and gasoline.

ENERGY SAVING MEASURES

Meanwhile, Garin said doing the 4-day work week setup will save around 14 to 15 percent in energy costs. But consumers can also do car pooling, lessening air conditioning use and putting the thermostat at 24 degrees instead of 18 degrees Celsius, and making sure their vehicles are well-maintained in order to utilize fuel efficiently.

EXCISE TAX SUSPENSION

Garin said Malacañang's certification of the bill as urgent will fast-track the process even before Congress goes into the Lenten break. If the government decides to suspend the excise tax, fuel prices will immediately go down by a hefty sum.

Excise Tax

Gasoline-P10.00/liter

Diesel-P6.00/liter

If the government decides to remove the excise tax now, it can help mitigate the looming big-time price increase by Tuesday and the coming weeks.

Source: news.abs-cbn.com