Diesel prices to go up by over P5/liter; kerosene by more than P4/liter (Sabong News)

Filipino consumers will be subjected into deeper financial burden as pump prices will be on colossal hikes this week, hitting record high of close to P5.50 per liter for diesel; and roughly P4.0 per liter for kerosene products, based on the calculation of the oil companies. As the Russia-Ukraine war escalated, the rally in global oil prices has also been relentless with international benchmark Brent crude going through the roof at $118 per barrel as of Friday (March 4) trading; and that is seen scaling up to $120 per barrel in the days ahead. On the estimate of industry players as referenced on the Mean of Platts Singapore (MOPS), gasoline prices will skyrocket to P3.60 to P3.70 per liter; diesel by P5.40 to P5.50 per liter; and kerosene will similarly incur radical spike of P3.95 to P4.05 per liter – all due on Tuesday (March 8) at petroleum pumps. For kerosene products, its impact will not just be on household use; but across significant industries also because it is the base fuel of the aviation sector, hence, it is expected that airline fares will eventually be incurring premiums. The weekly upswing in domestic oil prices had so far been showing the helplessness of the Philippines when it comes to keeping the wolf from the door – primarily on concerns of costs’ vulnerability to global oil market’s supply-demand fundamentals – and a war instigated by one of the world’s major oil producers has just been worsening that predicament. Apart from the Russia-Ukraine strife, another significant geopolitical factor influencing international oil prices is the feared civil war in Libya that even an anticipated US-Iran nuclear deal has been failing to soften prices. By next week, the forecast of oil market watchers point to global prices touching $120 per barrel or higher – especially if the Ukraine-Russia conflict will run on. Last week’s nine-minute decision-making of the Organization of the Petroleum Exporting Countries and its ally-producers (known as the OPEC+), prompted the injection of additional 400,000 crude barrels per day starting next month; but that had done very little to ease the rally in global oil prices. Market fears have been subsisting that sanction on Russian oil could be taken as a next step by world leaders; and that could stir up further conundrum on tight oil supply. In the Philippines, Energy Secretary Alfonso G. Cusi convened a meeting with the oil industry players on Friday, March 4, to plan out a “collective strategy to ensure the sufficient supply of petroleum products amid steep global prices driven by the Russia-Ukraine crisis.” He primarily pleaded that the government and the private sector “must band together and make things happen…and we must exhaust all available options to make things easier for the consuming public.” The energy chief, in particular, had apprised the oil companies that he would want “to listen to the concerns and suggestions of the industry players on how the DOE (Department of Energy) could help during this time.” At this point, the government is preparing for the disbursement of the P2.5 billion subsidy that shall be given to the public transport sector; as well as the P500 million financial assistance that the Department of Agriculture will be extending as fuel discounts to farmers and fisherfolk. Cusi had similarly reminded the industry players to strictly adhere to the minimum inventory requirement – given probable threats of supply disruption when Russian oil flow would be restricted into markets.