By: Pauline Ritchel Ramos
Photo by: GMA NEWS
Filipino motorists should prepare for a new wave of fuel price increases as several oil companies announced adjustments set to take effect on Tuesday, Nov. 12. This comes as the Philippines endures a string of cyclones that have battered various regions, causing significant damage in areas of Northern Luzon.
In separate advisories on Monday, Nov. 11, Seaoil, Cleanfuel, Jetti, and other fuel providers confirmed the following price hikes:
• Diesel: Up by P2.10 per liter
• Kerosene: Up by P1.20 per liter
• Gasoline: Up by P1.50 per liter
Shell, Jetti Petroleum, Petro Gazz, and Seaoil will implement the increase on Tuesday, Nov. 12 at 6 am, while Caltex will follow at 6:01 am, and Cleanfuel is set to raise prices later in the day, at 4:01 pm.
The oil price modifications correspond with widespread devastation caused by recent cyclones. Severe Tropical Storm Kristine and Super Typhoon Leon have already inflicted havoc, and Typhoon Nika is predicted to pose additional issues.
Furthermore, another cyclone is expected to enter the Philippine Area of Responsibility (PAR) on Nov. 12, spurring emergency preparations throughout the archipelago.
In response to the ongoing disasters, the Department of Energy (DOE) has issued a warning that petroleum product prices remain frozen in any territory under a state of emergency. This freeze is effective for 15 days and provides temporary relief to affected areas.
"Oil companies are hereby warned that any attempt to exploit this situation by engaging in overpricing practices shall be subject to severe sanctions, which may include imprisonment for one to 10 years, fines ranging from P5,000 to P1,000,000, or both," the Department of Energy (DOE) announced in a statement.
The increase also mirrors global oil market patterns. According to the Department of Energy-Oil Industry Management Bureau (DOE-OIMB), price changes were driven by hurricane-induced interruptions in the Gulf of Mexico which led to production cuts, causing a temporary drop in supply, and a delay by the Organization of the Petroleum Exporting Countries Plus’ (OPEC+) intentions to increase output.
The recent reduction in the U.S. The Federal Reserve's benchmark interest rate is anticipated to stimulate economic activity, which in turn is boosting oil demand and supporting higher prices worldwide.
This new increase comes after last week's small changes, which saw gasoline prices fall by P0.10 per liter, while diesel and kerosene rates jumped by P0.75 and P0.50 per liter, respectively.
As the Philippines experiences 3 tropical cyclones entering PAR this week, authorities are closely monitoring oil price adjustments and asking oil companies to maintain fair pricing in support of affected populations.