The government will work with local oil companies on the possibility of a staggered implementation of price increases should fuel prices continue to surge next week amid the worsening conflict in the Middle East.
On March 3, Seaoil, Jetti Petroleum, Caltex, and Petron increased the prices of diesel and kerosene by P1.20 and P1.50 a liter, respectively. This marks the 10th straight week of higher prices for diesel.
For gasoline, an increase of P1.90 per liter was implemented, marking its eighth consecutive week of upward price adjustments.
An industry source, however, warned of a “significant” price increase next week if the conflict in the Middle East involving the United States, Israel and Iran continues.
Leo Bellas, president of Jetti Petroleum, said the recent developments in the Middle East “have not been factored in yet in this week’s domestic price movement.”
“For next week, if the basis is solely on today’s prices, a significant increase is expected as we saw a big jump in oil and refined products prices at the start of trading,” he told the Inquirer.
Relief for Pinoys
On providing relief to Filipinos, Rino Abad, Department of Energy (DOE)–Oil Industry Management Bureau director, said that the government can request oil firms to implement a staggered approach in imposing price hikes to soften the impact on consumers.
He said the DOE would meet again with the private players this Friday, March 6.
Meanwhile, Abad assured the public that the current inventory of fuel retailers is good for nearly two months.
Fears about the continued surge in fuel prices mounted as the US and Israel started bombing Iran on February 28, leading to the death of top Iranian officials. US President Donald Trump said the attack was necessary to keep Iran from having a nuclear weapon.
Iran also responded by attacking US assets located across the region.
This tension threatens the Strait of Hormuz, a crucial route for oil supply coming from the Persian Gulf in the Middle East. (Lisbet K. Esmael – Reporter © Philippine Daily Inquirer)
