A series of big-time price hike in gasoline and diesel products will take effect this week.
Motorists will cope with P1.70 to P1.90 price per liter of gasoline, P.90 to P1.10 per liter of diesel.
The price hike will take effect as the government relaxes community quarantine measures to allow businesses to reopen.
On the other hand, kerosene products, which are essential for both household consumption and for aviation and other industries will cost P 0.80 to P0.95 per liter.
This round of price hike is the effect of global oil price increases in the past days. International benchmarks such as Brent crude reaches US$42 per barrel. The Asian market’s Dubai crude, on the other hand, levels at US$39 per barrel.
Previously, international prices of crude oil fell to us$18 to $20 per barrel. The hike came as a result of lockdowns due to coronavirus pandemic. However, oil markets are now on the recovery mode as restrictions on movement ease in some countries.
Earlier market forecasts show that global oil prices may return to US$50 per barrel towards the end of 2020. Still, the current developments are giving it a head start.
Bayanihan Act
In the Philippines, the projected adjustments in the fuel price hike do not include yet the 10 percent increase on duties imposed on imported crude and finished petroleum products.
President Rodrigo Duterte issued Executive Order No. 113 last month, which imposes higher import duty on fuel products in the duration of Bayanihan to Heal as One Act or as a temporary policy which will take effect over a period of six months or until December of this year.
Once the Bayanihan Act lapses, policymakers from both the Department of Energy and National Economic and Development Authority will decide if the import duty hike should be terminated earlier than it should.
Public transportation in the country remains limited as jeepneys, and other public utility vehicles are still not allowed to operate.
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