Price of diesel in PH may go above P80 per liter — DOE

The Department of Energy (DOE) on Friday projected that the price of diesel may exceed P80 per liter this month if there are no staggered price adjustments amid rising tensions in the Middle East.

DOE Oil Management Bureau Director Rino Abad floated the possibility during a hearing of the Senate committee on foreign relations, noting that the conflict between the United States and Iran is much worse than that of Russia and Ukraine.

“‘Yung Ukraine-Russia, Mr. Chair, umabot tayo ng mga 90 (peso per liter) kasi. So, ayaw kong mag-project. Pero, ito'y mas masama pa do’n eh. Kasi dito, Middle East ang pinag-usapan,” Abad said.

The Energy official made the remark when Senator Erwin Tulfo, chairman of the committee, asked about the effects of the Middle East conflict on the price of petroleum products.

“Ibig sabihin, sir, ‘pag hindi po tumigil itong bakbakan na ito, maari talaga at malaki ang posibilidad that within this month, tayo po ay Marso 6 pa lamang po ngayon, within this month, aabot itong buwan ng P90 per liter ang ating diesel at ang gasolina, ay maybe nasa P80 (per liter) na po? Kung tuloy tuloy po ito,” Tulfo said.

Abad said that such is possible for diesel if the oil price increase will not be on a staggered basis.

“Kung magi-implement ng staggered, hindi masyado abot kaagad. Pero kung one time bagsakan, pwede ‘yun umabot na po… To be safe, mga above 80 [pesos per liter] po,” Abad said.

Based on the first three days of trading this week, oil industry sources expect prices per liter of gasoline to be hiked by P7.09, and diesel by P15.33.

Asked about the possibility of rationing, Abad said that is always a part of the contingency plan.

Department of Transportation (DOTr) Assistant Secretary Dioscoro Reyes said they will immediately recommend to the President the release of fuel subsidy from the contingency fund.

Energy Regulatory Commission (ERC) Executive Director Nancy Fajardo, meanwhile, said the increase in prices of petroleum products will also have an effect on the price of electricity.

“Based on experience, what happened in 2022, and initial simulations from the market operator, definitely po meron po yung epekto sa generation charge or sa generation rate. So maapektuhan po yung presyo din natin ng kuryente,” Fajardo said. 

-Paraluman News