Filipinos should prepare for a significant increase in oil prices next week, driven by escalating geopolitical tensions in the Middle East.
An industry source indicates that diesel prices could rise between P9.50 to P10.50 per liter, while gasoline may increase by P3.50 to P4.50 per liter.
Impact of Geopolitical Tensions
World oil prices are mainly supported by an elevated geopolitical risk premium, which rebuilt after Iranian attacks on commercial ships attempting to transit the Strait of Hormuz.
Oil Industry Source
The recent unrest has raised concerns over potential supply disruptions. The situation is compounded by a sharp decline in vessel traffic in the Strait of Hormuz, which is crucial for oil transport.
Additionally, reduced diesel exports from Russia have further contributed to the anticipated price hikes.
Government Response to Rising Costs
In response to these rising costs, President Ferdinand "Bongbong" Marcos Jr. announced the expansion of the United Package for Livelihoods, Industry, Food, and Transport (UPLIFT) program.
This initiative aims to provide financial assistance to impoverished Filipinos affected by the oil price increases. Around 7.5 million households, or approximately 37.5 million individuals, will benefit.
- 3.5 million beneficiaries of the Pantawid Pamilyang Pilipino Program (4Ps) will receive additional aid.
- Eligible individuals may get a one-time financial assistance of up to P2,000.
The UPLIFT Assistance program is a critical step to support families as they navigate the financial strain from rising fuel prices.