Philippine Energy Secretary Sharon Garin announced on July 13 that diesel prices will increase by P2.62 to P4.62 per liter starting July 14, marking another week of upward pressure on fuel costs. The price adjustments, covering the period from July 14 to 20, also include kerosene increases of P2.22 to P4.22 per liter, while gasoline prices may range from a decrease of P1 per liter to an increase of up to P1 per liter. The continued rise in diesel and kerosene prices stems from tight refined fuel markets, driven by renewed Middle East tensions despite recent declines in crude oil benchmarks. The Philippines imports much of its fuel as finished petroleum products, making local pump prices directly influenced by regional refined fuel price movements tracked through the Mean of Platts Singapore (MOPS) rather than crude oil alone.
Department of Energy Announces Fuel Price Adjustments for July 14-20
In a press conference on July 13, Energy Secretary Sharon Garin announced the following permitted price range adjustments:
- Gasoline: from a decrease of P1 per liter to an increase of up to P1 per liter
- Diesel: increase of P2.62 to P4.62 per liter
- Kerosene: increase of P2.22 to P4.22 per liter
The adjustments will take effect on Tuesday, July 14.
Metro Manila Retail Fuel Prices Recorded for July 7-13
The Department of Energy's price monitoring showed common retail prices in Metro Manila at P74.60 per liter for gasoline RON95, P67.20 per liter for gasoline RON91, P72.80 per liter for diesel, and P100.40 per liter for kerosene for the week of July 7 to 13.
The latest adjustment follows last week's implemented price increase, which saw oil firms raise pump prices by P0.20 to P0.25 per liter for gasoline, P3.20 to P3.57 per liter for diesel, and P1.70 to P3.70 per liter for kerosene.
Refined Fuel Prices Rise Despite Crude Oil Decline
The DOE's oil monitor as of July 7 showed that Dubai crude prices fell by around $2.40 per barrel during the June 29 to July 3 trading period. International gasoline prices also declined by around $3.20 per barrel. But kerosene and diesel prices moved in the opposite direction, increasing by around $3.10 per barrel and $2.50 per barrel, respectively.
Local pump prices are more directly influenced by the Mean of Platts Singapore (MOPS), which tracks regional traded prices of finished fuels, rather than Dubai crude alone. The country imports much of its fuel as finished petroleum products, including diesel and gasoline.
Iran Closes Strait of Hormuz Amid Renewed US Tensions
Crude prices had eased earlier on improving Middle East supply flows and the improving flows through the Strait of Hormuz. But the situation remains fragile after renewed exchanges between the United States and Iran again raised concerns over shipping through the key oil route, with Iran declaring that it had closed the strait once more.
The Strait of Hormuz, the narrow waterway between Iran and Oman, remains one of the world's most important oil shipping routes. Any disruption to tanker traffic can quickly affect global crude and refined product prices.
Fuel Prices Remain Elevated Compared to Pre-Conflict Levels
Despite recent easing in Dubai crude, local pump prices remain above levels seen before fighting involving Iran and US-Israeli forces erupted on February 28. In the last full week before the conflict, DOE data showed common retail prices in Metro Manila at P56 per liter for gasoline RON95, P54.70 per liter for gasoline RON91, P55 per liter for diesel, and P83.47 per liter for kerosene.
The Philippines is a net importer of petroleum products, making local pump prices vulnerable to global oil price swings, foreign exchange movements, regional refined fuel prices, and disruptions in international supply routes.
FAQ
What fuel price adjustments did the Philippine government announce on July 13?
Energy Secretary Sharon Garin announced on July 13 that diesel prices will increase by P2.62 to P4.62 per liter, kerosene prices will increase by P2.22 to P4.22 per liter, and gasoline prices may range from a decrease of P1 per liter to an increase of up to P1 per liter for the week of July 14 to 20.
Why are diesel and kerosene prices rising despite falling crude oil prices?
The DOE's oil monitor as of July 7 showed Dubai crude prices fell by around $2.40 per barrel during June 29 to July 3, but diesel prices increased by around $2.50 per barrel and kerosene by around $3.10 per barrel. Philippine pump prices are directly influenced by regional refined fuel prices tracked through the Mean of Platts Singapore (MOPS), as the country imports much of its fuel as finished petroleum products rather than crude oil.
How do current fuel prices compare to levels before the Iran-US conflict?
In the last full week before fighting involving Iran and US-Israeli forces erupted on February 28, DOE data showed Metro Manila retail prices at P55 per liter for diesel and P83.47 per liter for kerosene. As of the week of July 7-13, diesel prices stood at P72.80 per liter and kerosene at P100.40 per liter, representing increases of P17.80 per liter and P16.93 per liter respectively.
