Expect another diesel price hike next week

MANILA, Philippines — Motorists may face another round of diesel price hikes next week, amid renewed hostilities in the Gulf region that have shaken the fragile US-Iran ceasefire. 

An industry source yesterday projected an increase of P1 to P3 per liter in diesel prices on July 7, citing the four-day average of the regional pricing benchmark Mean of Platts Singapore. Gasoline prices, meanwhile, could either increase or decrease by up to P1 per liter.

The estimates may still change, depending on how the global oil market performs during the final trading day of the pricing cycle. 

Even after signing an interim peace agreement, US and Iranian forces reportedly traded military strikes last week, with both sides accusing each other of violating the truce.

The disruptions have been keenly felt in the Philippines, which relies on the region for about 98 percent of its crude oil requirements.

Energy Secretary Sharon Garin renewed her call to amend the Oil Deregulation Law of 1998 to strengthen the government’s ability to intervene in the oil industry during times of crisis. 

“The energy sector has undergone significant changes, and the challenges it faces have also become more complex. That is why it is timely to update the law,” Garin wrote on social media yesterday.

She said the Department of Energy had already submitted its proposed amendments to the law to the Senate committee on energy. 

The proposals include establishing a national fuel reserve equivalent to at least 60 days of supply and increasing the minimum inventory requirement for oil companies to 30 days from the current 15 days.