Upcoming Fuel Price Hike in the Philippines

Motorists in the Philippines are set to face a hike in fuel prices, reversing the brief cost relief experienced last week. Starting Tuesday, February 20, major oil companies have announced significant increases in the prices of petroleum products. Gasoline prices will see a rise of P1.60 per liter, diesel will go up by P1.10 per liter, and kerosene prices will increase by P1.05 per liter. Leading oil firms like Shell and Seaoil have scheduled the implementation of these adjustments from 6 a.m. onwards.

Rodela Romero, the director of the Department of Energy’s (DOE) Oil Industry Management Bureau, attributed these price surges to several international factors. Key among these are the cessation of shipping activities in the Red Sea and the Suez Canal, coupled with escalating tensions in the Middle East. Furthermore, the Organization of the Petroleum Exporting Countries (OPEC) is anticipated to maintain its production cuts of 2.2 million barrels per day into the first quarter of the year, despite a temporary slowdown in global demand which has now rebounded with projections indicating a “strong demand” for oil in 2024.

This adjustment follows a week where oil prices were marginally reduced, with gasoline dropping by P0.60 per liter, diesel by P0.10, and kerosene by P0.40. These fluctuations have culminated in a net increase in fuel prices for the year, with gasoline up by P4.45 per liter, diesel by P4.30, and kerosene by P0.45 according to DOE records. Current retail prices in Metro Manila have already surpassed those recorded in the early weeks of January, highlighting the volatile nature of fuel costs amid ongoing global geopolitical and economic uncertainties.