Hefty hike for diesel, kerosene as Iran war escalates
The Department of Energy (DOE) on Monday projected a hike of P2.62 to P4.62 per liter of diesel, amid continued volatility in the global oil market, following the renewed conflict between the United States and Iran.
In its latest fuel price update for July 14 to July 20, the DOE said kerosene prices may also climb by P2.22 to P4.22 per liter.
Gasoline prices, meanwhile, are expected to remain largely stable, with adjustments ranging from a P1-per-liter rollback or increase.
Energy Secretary Sharon Garin said the agency may stop issuing estimated price ranges if global oil markets remain volatile, particularly due to tensions in the Middle East.
“If market volatility continues, particularly because of developments in the Middle East, we will change the format of our fuel price announcements,” Garin said.
“There will no longer be a price range. Instead, we will announce either the maximum or minimum adjustment. This is meant to protect consumers and ensure local pump prices accurately reflect movements in international oil prices,” she said.
Fuel inventories
Under the proposed approach, the DOE would issue a single projected adjustment—whether a rollback or a price increase—instead of a range.
Amid the expected price hikes, the DOE said the country’s fuel inventories remain sufficient.
As of July 10, the Philippines had an overall fuel supply equivalent to 47.87 days of demand.
Gasoline inventories were enough for 48.17 days, while diesel stocks could cover 45.69 days.
Kerosene had the highest inventory at 148.98 days, followed by jet fuel at 80.09 days.
Fuel oil inventories stood at 33.37 days, while liquefied petroleum gas stocks were sufficient for 39.51 days.
The DOE regularly monitors domestic fuel inventories to ensure an adequate supply even as global oil prices remain vulnerable to geopolitical developments and other market disruptions.
