DOE: Higher fuel prices possible next week as peso weakens
MANILA, Philippines — Consumers may have to brace for another round of fuel price hikes in the coming week as prices rise in the global market and the peso weakens against the US dollar.
Local oil companies price their products on a daily basis, but announce the adjustments every week. Their advisories sum up the daily changes in fuel prices.
"'Yung trend kahapon, Monday [June 27], lumabas na ang global market price sa trading. May bahagyang pagtaas po so kung ganito 'yung tutuluyan nito, magsasama or magcocompound 'yung pagtaas ng presyo at nung pagtaas ng dolyar," Department of Energy Undersecretary Gerardo Erguiza said during the Laging Handa briefing on Tuesday.
(The trend yesterday, Monday, showed that there is a slight increase, so if this continues, higher prices and the strengthening of the dollar will compound.")
Erguiza explained that there are many variables which cause the rise in fuel prices, but the latest is the rising foreign exchange rate.
The Philippines is heavily dependent on the world market for its oil, and a weak currency can make oil imports more expensive.
On June 22, the local currency ended the trading day at P54.47 against the US dollar, the worst performance in 16 years, as the Central Bank kept its dovish stance in the face of a more aggressive US Federal Reserve.
Five days later, the Philippine peso finished at P54.78 versus the greenback, stronger than the previous close of P54.985.
Domestic oil companies announced another round of increases for this week. Consumers have to pay an additional P0.50 for a liter of gas; P1.65 more per liter of diesel; and an extra P0.10 for a liter of kerosene.
Pump prices have been rising since the start of 2022 due to global developments which affected the world market, including large oil producer Russia's war against Ukraine.
The fuel price spikes prompted the Philippine government to roll out subsidies for affected sectors, including those in the transportation, agriculture and fisheries industries.
Year-to-date adjustments show that people have to shell out P30 more per liter of gas, P45.9 for a liter of diesel; and P39.75 per liter of kerosene, based on price advisories.
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