THERE will be a big-time oil price hike next week.
Based on the estimate of the Department of Energy–Oil Industry Management Bureau (DOE-OIMB), the cost of gasoline will increase by P2.50 to P3 per liter, diesel by P4.30 to P4.80 per liter, and kerosene by P4.25 to P4.40 per liter.
DOE-OIMB Assistant Director Rodela Romero said the estimate was based on four-day trading in the Mean of Platts Singapore.
“Kasi mataas ‘yung nangyayaring trading for the past four days, halos parang mga $3.5 per barrel hanggang $4 per barrel ang tinaas sa international trading,” Romero said in a radio interview.
(Because trading has been high for the past four days, prices increased by about $3.50 to $4 per barrel in international trading.)
Romero said reports that the increase in trading was brought about by the ongoing conflict between Iran and Israel remain “speculations.”
“Walang actual disruption na nangyayari pero ‘yung mga haka-haka, lalo na ang kinatatakutan na pagsasara ng passageway ng mga petroleum products from the Middle East, mas malaki ang magiging impact pag natuloy ang haka-haka. Sa ngayon, wala pang pagsasara at lahat speculation pa lang,” Romero said.
(There is no actual disruption happening, but the speculation, especially fears of a closure of the passageway for petroleum products from the Middle East, could have a bigger impact if it materializes. As of now, there is no closure, and everything remains speculative.)
“Ang Iran hindi natin source. Hindi tayo kumukuha, never tayong kumuha sa Iran (ng petroleum products). Kaya lang, may mga bansa na kinukunan natin ng petroleum products gaya ng China, South Korea, Taiwan—karaniwan sa kanila Iran ang source. Pero napakaliit ng epekto kung mawawala si Iran. Siguro mga 1.5 percent ng total global demand. So marami pang alternative sources,” she added.
(Iran is not our source—we don’t get, and have never gotten, petroleum products from Iran. But countries we get products from, like China, South Korea, and Taiwan, often source theirs from Iran. Still, the impact of Iran being removed from the supply chain is very small—about 1.5 percent of total global demand. There are many alternative sources.)
Last week, President Ferdinand “Bongbong” Marcos Jr. said the government is ready to provide fuel subsidies to affected sectors should the need arise.
“We are starting already with the assumption that the oil prices will in fact go up and I cannot see how it will not. Because the Strait of Hormuz will then be blocked if it escalates. The oil cannot come out of its sources. So the prices will certainly be affected,” Marcos said.
“So the subsidies that we have always given, fuel subsidies, that we gave to, if you remember during the pandemic, lalong-lalo na 'yung mga napapasada, 'yung mga may hanapbuhay naman sila, binigyan natin ng fuel subsidies,” he added.
(...especially to those plying routes, those who rely on driving for their livelihood, we gave them fuel subsidies.)
The major price hike will be implemented on Tuesday, June 24. (TPM/SunStar Philippines)