The Department of Energy (DoE) is set to review its fuel pricing rules on Friday, amid concerns over global oil supplies due to renewed tensions in the Middle East. Diesel prices are projected to rise by as much as P10 per liter next week, with gasoline prices possibly increasing by P3.50 to P4.50 per liter.
The agency is considering replacing its practice of announcing a range of weekly fuel price adjustments with a single prescribed adjustment, in light of heightened market volatility. Energy Secretary Sharon S. Garin earlier stated that the DoE plans to set a definite price adjustment rather than a flexible range.
After three trading days used to compute next week's domestic fuel prices, diesel prices are projected to increase by P9 to P10 per liter, while gasoline prices could rise by P3.50 to P4.50 per liter. The Strait of Hormuz handles about a fifth of global oil shipments, making any disruption a major driver of crude prices.
Top Line Business Development Corp. Senior Vice-President and Chief Operating Officer Brigitte Carmel C. Lim noted that local pump prices could continue rising if elevated global prices persist. She added, however, that it's still too early to say whether double-digit increases will occur, and that much will depend on how the situation develops and whether tensions escalate further.
The DoE ordered oil companies to adjust gasoline prices within a range of a P1-per-liter rollback to a P1-per-liter increase, while diesel and kerosene prices were allowed to rise by as much as P4.62 and P4.22 per liter, respectively. As a result, gasoline prices in Metro Manila and nearby areas have climbed to about P96.10 per liter, while diesel now costs around P90.77 per liter.
President Ferdinand R. Marcos, Jr. also announced an expansion of the government's Unified Package for Livelihood, Industry, Food and Transport Assistance Program to help cushion the impact of higher fuel prices and rising inflation linked to the Middle East war. The expanded program aims to benefit about 7.5 million households, or roughly 37.5 million Filipinos.
The government will provide a monthly assistance of P2,000 to about 1.5 million low-income workers and their families registered with the Social Security System, while another 2.5 million poor and near-poor households identified through the 2024 community-based monitoring system will receive the same monthly assistance. A one-time additional grant of as much as P2,000 to 3.5 million beneficiaries of the Pantawid Pamilyang Pilipino Program and the Walang Gutom Program will also be provided.
The Department of Budget and Management has released a P12.375-billion special allotment release order and notice of cash allocation to fund the expanded assistance. The government aims to protect the ability of Filipino families to meet their daily needs and prevent increases in transport fares and commodity prices.
