Starting May 5, diesel and gasoline prices will rise in the Philippines following three weeks of reductions. The Department of Energy (DOE) announced the new prices amidst ongoing global supply disruptions.
The increase will see diesel prices rise by approximately P2.66 per liter and gasoline by P2.21. Meanwhile, kerosene prices will decrease by at least P3.53 per liter.
After the adjustment, diesel prices in Metro Manila are expected to range from P79.62 to P102.16 per liter. Gasoline will range from P74.11 to P102.20 per liter, with kerosene priced between P124.97 and P146.47.
Additionally, liquefied petroleum gas (LPG) prices will also rise, increasing by P13.42 for an 11-kilogram cylinder, bringing the estimated dealer's price to between P1,070.42 and P1,701.77.
Global Factors Affecting Prices
DOE Secretary Sharon Garin noted that while there has been an adjustment of $8 in the Mean of Platts Singapore (MOPS) for diesel, a decrease of $7 on the premium and a slight increase in freight costs contributed to the price rise.
The ongoing tensions in the Middle East, particularly between the U.S. and Iran, have raised concerns over fuel supply routes, further complicating the situation. This has also impacted U.S. gasoline inventories, leading to tighter global supply.
Prices were boosted by renewed attacks on ships near the Strait of Hormuz, which raised concerns over fuel supply routes.
Department of Energy
Currently, the country's fuel inventory is sufficient, with an estimated supply lasting 53.71 days based on average daily demand. The Philippines recently procured 150 million liters of diesel and does not foresee the need for additional supplies.