Fuel Prices Soar as Middle East Conflict Intensifies
Fuel prices in the Philippines are expected to rise further due to the ongoing conflict in the Middle East, which has put pressure on global oil markets. The Department of Energy (DoE) has announced that gasoline prices will increase by P5.68 per liter, diesel by P4.31 per liter, and kerosene by P4.62 per liter.
The increases will push pump prices in Metro Manila to over P100 per liter, with gasoline reaching P107 per liter, diesel at P111 per liter, and kerosene nearly P141 per liter. The Philippines imports most of its fuel needs from the Middle East, making it vulnerable to price swings in the global oil market.
Analysts predict that Asian prices will be affected by the supply disruption caused by the conflict, leading to further increases in diesel and gasoline prices. 'Asian prices can be affected by the consequent curtailment of refinery feedstock due to the supply disruption,' said Leo P. Bellas, president of Jetti Petroleum, Inc.
The DoE's Oil Industry Management Bureau director Rino E. Abad confirmed that the 30-day trading average of Dubai crude price has exceeded $80 per barrel as of September 11, which could trigger a proposal to suspend fuel excise taxes. The removal of the tax can result in a reduction of P3.36 per kilo for liquefied petroleum gas (LPG) and P5.60 for every liter of kerosene.