MOTORISTS, brace yourselves, especially those using diesel.
The Department of Energy said on Sunday that the anticipated increase in the price of diesel per liter may be higher than expected.
In an interview on radio station dzBB, Department of Energy Oil Industry Management Bureau director Atty. Rino Abad said “yes,” when asked about the possibility of a price increase for diesel beyond P4/liter.
Reports said that several of the fuel companies’ forecasts showed that the price hike on diesel may reach P4.10 per liter this week.
“May possibility talaga na aabot-abot ng ganu’ng estimate ang diesel,” Abad said during the radio interview.
For kerosene, it is still around P2.70 – P3.00 per liter, according to oil industry players.
Gasoline prices will also increase, with the highest projected at P0.50 per liter.
“Ang kerosene, mas mababa pero nandun pa rin sa range ng mga P3, mga P2 [per liter], basta nandiyan sa mga range na ‘yan. Ang gasolina lang po as I said earlier (P.10 to P.50 per liter) hindi po aabot ng [piso]… So confirmed na po ‘yan,” Abad said.
Earlier, OIMB Assistant Director Rodela Romero said that based on industry estimates from the oil trading from July 31 to August 3, 2023, the price per liter of diesel may increase by up to P3.60 per liter, kerosene by P2.65 per liter, and gasoline by P0.15 to P0.35 per liter.
Romero earlier said the increase in prices was due to Saudi Arabia’s decision to further cut its production.
The increase in demand is also being cited as another reason.
Romero said that they will keep a close watch on the oil production in Saudi Arabia in the coming days.
So what if diesel prices go up?
The majority of the public utility jeepneys use diesel. This puts them in a tight situation as further price hikes mean spending more on diesel, which translates to a lower take-home pay.
A call for higher minimum fares or another protest by transport groups may be in the offing.
Many agricultural machines also rely on diesel for their processes, so an increase in production costs means an increase in the price of acquiring them.
These extra costs may be passed on to consumers.
And the rest of the dominoes fall as well.
What do you think of the new round of oil price hikes? Let us know in the comments section.
