Another fuel price hike set for July 28

The increase follows last week’s big jump, when diesel rose by P10.68 per liter and gasoline by P3.65 per liter AT A GLANCE MANILA, Philippines – Pump prices are going up sharply again starting Tuesday, July 28, extending the run of fuel price increases driven by renewed volatility in the Middle East. In a press conference on Tuesday, July 28, Energy Secretary Sharon Garin announced the following maximum price increases for the week of July 28 to August 3: Gasoline – increase of P6.80 per liter Diesel – increase of P7.32 per liter Kerosene – increase of P4.22 per liter The adjustments will take effect on Tuesday. “These price movements continue to stem from the developments in the Middle East, which have kept global oil markets under pressure. If there’s trouble in Ukraine or in the Strait of Hormuz, prices here are affected,” Garin said in a mix of English and Filipino. “This is how vulnerable we are.” Garin also said that fuel inventories remain “sufficient” at a “very healthy level” with no disruption to supply. There is a “glimmer of hope” that fuel prices could decline next week, according to Energy Undersecretary Sandy Sales. Progress in third-party negotiations, including the involvement of China and Pakistan, as well as the halt in missile strikes between Iran and the United States, helped pull down global oil prices in trading sessions on last Friday, July 24, and Monday, July 27. Before the latest adjustment, the Department of Energy’s (DOE) price monitoring showed common retail prices in Metro Manila at P71.80 per liter for gasoline RON95, P70.30 per liter for gasoline RON91, P88.40 per liter for diesel, and P117 per liter for kerosene for the week of July 21 to 27. The latest increases follow last week’s bigtime fuel price hike s, when gasoline prices rose by P3.65 per liter, diesel by P10.68 per liter, and kerosene by P11.77 per liter. Diesel and kerosene prices sharply higher on July 21, dashing hopes that pump prices would soon return to levels seen before the Middle East conflict. Garin had said the increase was still being driven by uncertainty from tensions involving Iran, Israel, and the United States, which have continued to affect the global oil market. (READ: Iran war spreads to Red Sea and Caspian, Gulf quiet as US forgoes strikes ) Global oil prices have remained volatile as conflict in the Middle East continues to threaten key shipping routes. The Strait of Hormuz, the narrow waterway between Iran and Oman, remains one of the world’s most important oil shipping routes. Any disruption to tanker traffic can quickly affect global crude and refined product prices. That matters for the Philippines because the country imports much of its fuel as finished petroleum products, including diesel and gasoline. This means local pump prices are more directly influenced by regional traded prices of finished fuels, especially the Mean of Platts Singapore, or MOPS, rather than Dubai crude alone. Despite intermittent easing in crude prices, local pump prices remain well above levels seen before fighting involving Iran and US-Israeli forces broke out on February 28. In the last full week before the conflict, DOE data showed common retail prices in Metro Manila at P56 per liter for gasoline RON95, P54.70 per liter for gasoline RON91, P55 per liter for diesel, and P83.47 per liter for kerosene. The Philippines is a net importer of petroleum products, making local pump prices vulnerable to global oil price swings, foreign exchange movements, regional refined fuel prices, and disruptions in international supply routes. – Rappler.com