By: Christian Lagrimas
Photo by GMA News
Local concessionaires and fuel providers implemented a major price increase of ?1.90 per liter to gasoline, ?1.20 to diesel, and ?1.50 to kerosene.
Energy Secretary Garin warned that an increase once more may occur potentially reaching ?4.00 per liter for diesel next week as tensions continue as disruptions at the Strait of Hormuz, a vital passageway for marine transport of fuel, persist following strikes on regions that surround the maritime corridor.
“So, mga halos 80% to 90% ng fuel natin dumadaan sa Strait of Hormuz. So, major na problem ‘yan,” she said.
“We met with the oil companies and they assured us na sufficient ‘yung supply nila, na they have enough time to order for some more kapag kumaunti na,” she added.
The Land Transportation Franchising and Regulatory Board (LTFRB) had earlier confirmed a temporary hike in fuel to avoid a transport shutdown.
“We have definitely considered the granting of provisional increases…across the board if necessary, if the price of fuel increases, pump price, more than ?60 per liter,” said LTFRB Chairperson Vigor Mendoza II.
Following this increase in fuel prices, the Department of Energy (DOE) cautions next week’s increase in fuel prices may be more severe.
“Prices will really go up. I will not sugarcoat that,” stated Garin.
“Even if you say that oil imports are arriving, prices will still rise because of that tension. The stress in the market will push the price higher until it stabilizes.”
As prices continue to surge upwards, the department continues to negotiate with oil companies to stretch the increase to several weeks.
DOE Director Rino Abad stated, “We are asking [oil companies] to stagger it so that the impact is not as heavy. Even if it’s just two pesos, we want to implement it gradually.”