Diesel, kerosene to rise by over P3/L

MOTORISTS may see higher fuel costs this week, with diesel and kerosene prices increasing by more than P3 per liter (L), according to the Department of Energy.

In a briefing on Monday, Energy Secretary Sharon S. Garin said gasoline prices may roll back by as much as P1.75 per liter or increase by up to P0.25 per liter starting on Tuesday, July 7.

Meanwhile, diesel and kerosene prices may rise as high as P3.57 per liter and P3.70 per liter, respectively.

Despite the upward fuel price adjustment, Ms. Garin affirmed that “the worst is over,” expressing hope that prices will begin to return to pre-Iran war levels.

The Energy chief said that crude oil prices in the international market have begun to decrease, falling below $80 per barrel.

“The industry is beginning to stabilize, and I think it is now just a matter of adjustments. Hopefully, we can eventually return to pre-war levels, but it will take time,” she said.

“It won’t happen in just one week or two weeks. It might take [a] few months. But I think the worst is over and hopefully we can start adjusting to pre-war prices,” she added.

Energy Undersecretary Alessandro O. Sales said that while global crude oil prices already dropped to pre-war levels, local pump prices remain higher as these continue to track Mean of Platts Singapore — a regional pricing benchmark.

“There is a so-called lag time before crude oil arrives, before it is brought to the refinery, before it is processed, and before it is sold as a finished product,” he said.

“So, our expectation is that if no major disruptions occur again, within one to two months, this lag time will catch up, and product prices will also begin to normalize,” he added.

The Philippines is a net importer of crude oil and sources most of its supply from the Middle East, making the country vulnerable to global crude price swings.

As of July 3, the national fuel stockpile stood at 78 million liters that could last for 46.50 days, increasing from 41 days last week. — Sheldeen Joy Talavera