Gas prices in the Philippines are set to increase again this week, marking the second consecutive price hike. Starting Tuesday, gasoline will rise by P1.35 per liter, while diesel and kerosene will increase by P0.80 and P0.70 per liter, respectively.
The price hikes, which will affect both individual drivers and commercial transport operators, are attributed to global factors such as US sanctions on Iranian oil and a reduction in US crude inventory, which have impacted international oil supply.
The Department of Energy had already predicted these price increases. The new fuel prices are approaching the levels seen before the price rollbacks during the Holy Week. Since the beginning of 2023, both gasoline and diesel prices have risen by over P3 per liter.
In Metro Manila, fuel prices remain high. Premium gasoline is nearly P68 per liter, and diesel is above P50 per liter. With the latest price hikes, fuel costs are expected to hit record highs for the year.
Transport groups are expressing concern about rising operating costs, and logistics and delivery services are struggling with narrower profit margins. Small businesses are particularly affected, as rising fuel costs are squeezing their profits, especially amid lower consumer spending.
The increase in fuel prices also raises the cost of goods and services, including public transport and food, adding to concerns about inflation. Analysts are closely monitoring oil prices, as further disruptions to supply could lead to additional price hikes. The role of OPEC in influencing future prices is also being closely watched.
As fuel costs continue to rise, there is an increasing need for energy-saving and alternative energy solutions. The coming weeks will be crucial for both households and businesses as they navigate these rising costs.
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