MOTORISTS should brace for a big-time hike in pump prices next week amid the Israel-Iran conflict, which is expected to have a major impact on the oil industry.
The estimated ranges in upward price adjustments are as follows:
* gasoline – increase of P2.50 to P3
* diesel – increase of P4.30 to P4.80
* kerosene – increase of P4.25 to P4.40
The estimates, according to Department Energy of Energy-Oil Industry Management Bureau Assistant Director Rodela Romero, are based on the four-day trading in MOPS (Mean of Platts Singapore).
Rodero said the biggest factor for the possible increase is a “major oil price shock looming as the Israel-Iran conflict threatens critical global shipping passage.”
Fuel firms announce official price movements every Monday, to be implemented on the following day.
Meanwhile, President Ferdinand “Bongbong” Marcos Jr. earlier this week said that fuel subsidies would be given amid the expected oil price hike.
“We are starting already with the assumption that the oil prices will in fact go up and I cannot see how it will not. Because the Strait of Hormuz will then be blocked if it escalates. The oil cannot come out of its sources. So the prices will certainly be affected,” President Marcos said.
He added: “So the subsidies that we have always given, fuel subsidies, that we gave to, if you remember during the pandemic, lalong-lalong na ‘yung mga napapasada, ‘yung mga may hanap-buhay naman sila, binigyan nating fuel subsidies.”
The President also said that the fuel subsidy will include others who will be “severely affected.”
Under the existing policy, fuel subsidies for public transport drivers and farmers are automatically activated when the price of Dubai crude breaches $80 per barrel.
The 2025 General Appropriation Act provides an allocation of P2.5 billion through the Department of Transportation for fuel subsidies to drivers of public utility vehicles, taxis, ride-hailing services, and delivery platforms across the country.
As of June 16, the price of Dubai crude reached $73 per barrel. (GMA Integrated News)
