Fuel prices rise beginning Tuesday as retailers pass on price hikes of all major petroleum products, marking the first increase of the year. The price adjustments, while modest, are significant for consumers and businesses alike, reflecting both global economic trends and regional supply shortages.
Seaoil and Caltex raised the price of gasoline and kerosene by P1 per liter, while diesel saw a hike of P1.40 per liter. Similarly, Clean Fuel and Jetti implemented similar price increases for gasoline and diesel, with a P1 per liter rise for gasoline and a P1.40 increase for diesel.
These price adjustments are attributed to a combination of positive economic signals from China—currently the world’s largest fuel importer—and tightening regional supply. As Leo Bellas, president of Jetti Petroleum Inc., noted, “Shrinking regional supply of diesel and gasoline due to lower outflows from major supplier China has lifted the prices of both products.”
The Department of Energy’s (DOE) latest data highlights the price landscape heading into 2025. As of end-December 2024, the retail price of gasoline (RON91) in Manila averaged P57 per liter, diesel at P56.25, and kerosene at P70.95. Despite a net increase of P12.75 per liter for gasoline and P11 per liter for diesel over the course of 2024, kerosene saw a slight drop, decreasing by P2.70 per liter.
Bellas also emphasized that the price increase could have been steeper if not for rising U.S. fuel inventories, which point to a slowdown in demand. The combination of these factors—China’s economic recovery, supply shortages, and global demand dynamics—sets the stage for an uncertain energy landscape in 2025.
