According to the Department of Energy (DOE), fuel prices across the Philippines are expected to rise significantly next week. Following a surge in global oil prices, local gasoline, diesel, and kerosene pump prices are forecasted to increase by over P1 per liter. This adjustment will likely strain household budgets and intensify concerns over inflation.
The DOE’s Oil Industry Management Bureau Director Rodela Romero outlined the anticipated hikes: gasoline prices could jump by P1.10 to P1.40 per liter, diesel by P1.70 to P1.90, and kerosene by P1.10 to P1.20 per liter. Romero attributed this increase to recent developments in the global oil market, particularly the impact of storms affecting oil production in the Gulf of Mexico and delays by OPEC+ in planned production hikes.
Global and Domestic Pressures Drive Price Hikes
Several factors have driven the upward trend in oil prices. U.S. oil output is expected to drop due to storm disruptions in the Gulf of Mexico. In addition, OPEC+ recently postponed its plans to boost production in December, while the U.S. Federal Reserve’s expected interest rate cut is influencing global commodity prices. Meanwhile, on the domestic front, the peso’s depreciation has added pressure to import costs, further impacting local fuel prices.
Romero also noted that areas in the Philippines under the State of Calamity would enforce a temporary price freeze on liquefied petroleum gas (LPG) and kerosene, lasting 15 days after the declaration. This measure aims to provide temporary relief for consumers in affected regions.
Price Adjustments Scheduled for Next Week
Oil companies typically announce adjustments on Monday, with the changes implemented the following day. As fuel costs continue to climb, the DOE urges consumers to monitor announcements and plan. The upcoming increase, influenced by international and local factors, underscores the volatility of global oil markets and their direct impact on Filipino households.
Jaja has a degree in journalism and took classes in international law and business communication. Her career spans roles at prominent international media outlets, including International Business Times, Celebeat and Delightful Philippines. As a news editor, Jaja covered a wide range of beats, including legal, business, economy, cryptocurrency, personal finance, gaming, technology, and entertainment.