MANILA, Philippines — Amid renewed escalation in the Middle East conflict, the Department of Energy (DOE) plans to once again cap fuel price hikes and mandate minimum rollbacks to prevent “abusive” pricing by oil firms.
“If things are still volatile next week, we will no longer prescribe a price range. Instead, we will impose an indefinite maximum or minimum adjustment, whether it’s a rollback or a fuel price hike,” Energy Secretary Sharon Garin told reporters yesterday.
In this way, the DOE would be better equipped to monitor and manage fuel prices while protecting consumers from unfair pricing by oil companies, Garin said.
Motorists are bracing for another round of fuel price adjustments today, with diesel expected to increase by P2.62 to P4.62 per liter and kerosene by P2.22 to P4.22 per liter.
Gasoline prices, meanwhile, could either increase or decrease by as much as P1 per liter.
Because the DOE only prescribes a price range, oil companies can choose to implement only a price hike rather than a rollback, a pattern that has emerged since the easing of fuel pricing rules.
According to Garin, setting specific adjustments would ensure fuel prices reflect prevailing market conditions, especially amid renewed fears of supply tightness.
“Renewed geopolitical tensions in the Middle East have once again raised concerns over global oil supply disruptions… So expect a slight increase in our prices,” the energy chief said.
Global benchmark Brent crude climbed to around $79 per barrel yesterday, halting a two-day slide as renewed geopolitical tensions supported oil prices.
In the Philippines, the average fuel inventory remained at a comfortable level, with stocks sufficient for about 47.87 days as of July 10, according to DOE data.
Meanwhile, the Civil Aeronautics Board (CAB), in an advisory, ordered carriers to trim the fuel surcharge to Level 8 for the period of July 16 to 31, from Level 9 currently.
Level 8 means the fuel surcharge is limited between P253 to P787 for domestic flights. On top of this, airlines can slap P835.05 to P6,208.98 for international services, depending on the distance.
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