Pump prices expected to increase after Christmas

MANILA, Philippines — Oil companies are expected to increase their pump prices in the last week of 2023, the Department of Energy (DOE) said on Friday.

DOE Director of Oil Industry Management Bureau Rodela Romero said that the increase in prices is due to the oil tankers avoiding the Red Sea following attacks of the Yemen-based Houthi rebels.

"Makakaranas po tayo ng pagtaas sa presyo ng produktong petrolyo sa darating na Martes, that's Dec. 26," Romero said in an interview with Teleradyo Serbisyo.

(We will experience price hike of petrol products this Tuesday, that's December 26)

Citing three-day trading prices, diesel prices are expected to increase by P1.43 per liter, while gasoline prices are expected to hike by P1.58 per liter.

Kerosene prices are also poised to increase by P1.58 per liter next week.

The Houthis, a militant group backed by Iran, have frequently attacked ships in the crucial Red Sea shipping route, claiming that these strikes are in solidarity with Palestinians in Gaza. 

Stockbroker AB Capital Securities on Wednesday also pointed out that the Houthi attacks on the Red Sea will affect global trading routes which might “trigger a domino effect on various industries, leading to inflationary repercussions.”

“The inflationary pressures stem from the expected rise in shipping costs,” the stockbroker said in a statement on Wednesday.

Last week, oil companies implemented a decrease in kerosene prices by P0.85 per liter. On the other hand, it increased diesel prices by P0.10 per liter.

Gasoline prices had no movement last week.

Price adjustments will take effect on Tuesday, with some oil firms implementing the price changes at 6 a.m., while some companies will adjust their prices at 12:01 a.m.