Bunker fuel posts increases in 7 months

Prices of diesel, bunker and the special fuel oil mixtures primarily used by ship operators posted significant increases during the past seven months beginning August 2002.

Statistics compiled by the Department of Energy (DoE) showed the price of bunker fuel increased from P11.46 per liter in August 2002 to P14.34 per liter this month, translating to a 25.12 percent rise in fuel costs for domestic ship operators. This figure is comparatively higher than the 14.42 percent rise per liter in aviation turbo jet fuel, further widening the incentive gap between the airline and shipping sectors, according to a statement by the Philippine Interisland Shipping Association (PISA).

Diesel prices also posted a 17.45 percent increase, slightly lower than bunker fuel. DoE data show that the price of diesel products rose from P13.81 per liter in August 2002 to P16.22 per liter this March.

Between the period of August 2002 and March 2003, prices of Special Fuel Oil (SFO), which is basically a special mixture of bunker and diesel fuel, were also on the upswing. SFO 57 posted a 20.18 percent increase during the seven-month timeframe, while SFO 200 registered a 22.41 percent increase. SFO 400, 600 and 1100 increased by 23.36 percent, 23.83 percent and 24.57 percent, respectively.

PISA said the domestic shipping sector is now beginning to feel the effects of the ongoing threats of war in the Middle East. – Nestor Etolle