The series of fuel price hikes and its impact on the lives of consumers could persist all the way to December, the Department of Energy (DOE) said on Sunday.
Rino Abad, director at the DOE’s Oil Industry Management Bureau, acknowledged in a radio interview this was entirely possible given the absence of factors present today that could mitigate the price hikes.
Abad said, for instance, that the Organization of Petroleum Exporting Countries (OPEC) recent decision to cut its production output already resulted to a 500,000 barrel per day global supply deficit.
The DOE said the series of price hikes have been made worse by central banks, including the Bangko Sentral ng Pilipinas, effectively helping ease liquidity conditions by putting their collective control over interest rates on hold.
“Usually, rollbacks occur earlier in the year due to several interest rate adjustments. That is one way they intentionally temper economic growth… If that is what pull prices down before and we are not expecting any more rate hikes, at this level we don’t see any other way,” Abad said.
He acknowledged not knowing where or when the oil price hikes will start or stop but unless a major moderating event happens, the oil prices “may stay at this elevated situation.”
Abad, citing DOE estimates, projected another petroleum products price hike on Tuesday of more than P2 per liter for diesel and kerosene but below P2 per liter for gasoline.
Several oil retailers announced over the weekend the price adjustments in the week ahead could rise from P1.80 to P1.90 per liter for diesel and from P1.20 to P1.30 per liter for gasoline.
Last week, fuel prices adjusted higher and brought the cumulative per liter hike to P9.85 for gasoline, P14.05 for diesel and P13.45 for kerosene.
DOE Data show the price per liter of gasoline (RON95) in Manila at P75.40, diesel at P66.30 and kerosene at P81.26.
DOE data also show year-to-date net increase of P15.50 per liter for gasoline, P11.10 per liter for diesel and P7.94 per liter for kerosene.
