Close to P5 per liter gas price hike looms

Motorists should expect an increase of almost P5 per liter at the pump next week, amid supply fears caused by escalating tensions in the Middle East.

- BRIX LELIS

Citing geopolitical conflict, the Department of Energy (DOE) has indicated per-liter price hikes of P2.50 to P3 for gasoline, P4.30 to P4.80 for diesel and P4.25 to P4.40 for kerosene.

The estimates reflect the trading results in the global oil market over the past four days.

Yesterday's trading would determine the final price adjustments, which will be announced on Monday and will take effect the following day.

"A major oil price shock is looming, as the Israel-Iran conflict threatens critical global shipping passage," Oil Industry Management Bureau assistant director Rodela Romero said.

The market is on edge as the persistent tensions abroad could disrupt trade flows in the Strait of Hormuz, a major trade route for global oil and gas shipping.

Jetti Petroleum president Leo Bellas, meanwhile, said prices also spiked on fears that US involvement in the war could escalate the conflict and lead to direct attacks on energy infrastructure.

Given this development, the DOE has said the government is ready to provide fuel subsidies to public utility vehicles should the situation worsen.

"Our immediate priority is to ensure that our fuel supply remains stable and sufficient, and that any local price adjustments are managed in a way", that minimizes disruption to our economy," DOE officer-in-charge Sharon Garin said.

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