Philippines: Big oil price hikes set for last week of October

Manila: Motorists in the Philippines should prepare to tighten their belts as major fuel price hikes are hitting the market this week.

Local fuel retailers announced on Monday that prices will rise significantly, with diesel seeing a jump of ₱2 per liter.

Gasoline and kerosene prices won't be far behind, increasing by ₱1.20 and ₱1.70 per liter, respectively.

Retailer Seaoil issued the advisory confirming the diesel price hike.

Other companies including Shell, Cleanfuel, and Petro Gazz are expected to implement similar changes starting Tuesday, October 28.

Cleanfuel plans to roll out their price increase slightly later in the afternoon, at 4:01 p.m.

Leo Bellas, president of Jetti Petroleum, attributes the price surges to fresh sanctions imposed on Russia's two major oil firms.

“Oil prices are higher due to concerns that the fresh US sanctions on Russian companies, following sanctions imposed by Britain last week, could lead to tighter physical flows of Russian oil,” Bellas explained.

He added that this situation is forcing buyers to reroute their oil purchases from alternative sources, causing disruptions in the global supply chain.

This latest increase marks the fourth consecutive week of rising fuel prices, putting additional pressure on consumers and businesses alike.

The Philippine Department of Energy's Oil Industry Management Bureau had earlier projected these hikes, citing stronger refinery demand and decreasing crude oil inventories in the US.

Year-to-date, gasoline prices have gone up by ₱16.50 per liter, diesel by ₱19.15, and kerosene by ₱6.55.

Motorists are encouraged to look out for price variations depending on location and fuel brand, as costs can differ from station to station.

Fuel companies traditionally announce price changes every Monday, with the new prices taking effect the following day.