DOE expects price hikes in diesel, kerosene next week amid weak peso
MANILA, Philippines— Consumers may have to pay more for fuel, particularly diesel and kerosene in the last week of June, the Energy department said on Friday, citing a weak peso.
Gas, however, may experience a small rollback of around P1 per liter, according to the Department of Energy-Oil Industry Management Bureau Director Rino Abad.
Citing computations based on weakening of the local currency, Abad said in an interview with Dobol B TV that diesel may increase by "around P1 per liter", and kerosene can rise by "not more than 50 centavos per liter."
The weakening of the peso against the greenback is the new factor in the projected increase in some petroleum products, Abad added.
He explained that domestic oil companies price their products on a daily basis, but announce the adjustments once a week. Their advisories sum up the daily changes in fuel prices.
On June 22, the local currency finished trading at P54.47 against the U.S dollar, the worst performance in 16 years, as the Bangko Sentral ng Pilipinas maintained its dovish stance in the face of a more aggressive U.S Federal Reserve.
The Philippines is heavily reliant on the world market for its oil requirements, and a weak currency could make oil imports more expensive for the country.
Pump prices of gas, diesel and kerosene have been constantly increasing since the start of the year due to global developments, including large oil producer Russia's war against Ukraine.
The price spikes prompted the Philippine government to disburse fuel subsidies to the transport, agriculture and fisheries sectors; and renewed calls to suspend the fuel excise taxes.
This week, consumers had to pay an additional 80 centavos for a liter of gas; P3.1 more for a liter of diesel; and an extra P1.7 for a liter of kerosene.
Year to date data shows that gas has increased by a total of P29.5 per liter; diesel at P44.25 per liter; and kerosene by P39.65 per liter, based on oil price advisories. — Angelica Y. Yang
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