March 17: Double-digit fuel price hike sends diesel past P100 per liter

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MANILA, Philippines — Motorists will have to bear another week of double-digit fuel price hikes as geopolitical tensions in the Middle East show no sign of easing.

The Department of Energy (DOE) announced at a press conference on Monday, March 16, the fuel price increases from March 17 to March 23:

Gasoline (RON91): P12.90 to P16.60
Diesel: P20.40 to P23.90
Kerosene: P6.90 to P8.90

Oil firms will implement another staggered price increase, with most taking full effect within three days, ultimately sending diesel above P100 per liter and gasoline to around P90 per liter by the end of the week.

Table shows the staggered implementation of the price hike for gasoline, diesel and kerosene from March 17 to 23.

DOE via YouTube / Philstar.com's screenshot

The second round of double-digit fuel price increases was triggered after the United States and Israel launched joint airstrikes on Iran on February 28, targeting the oil-rich country in an effort to stop its nuclear plans when talks failed.

Iran retaliated by attacking US and Israeli bases across the Middle East and closing the Strait of Hormuz, a key global trade route for oil.

Data compiled by Al Jazeera, based on figures from Iran’s Health Ministry, showed that at least 1,444 people were killed and 18,551 were injured in Iran as of March 15, while 826 deaths were reported in Lebanon.

Washington, Tel Aviv, and Tehran have already been exchanging airstrikes for the past two weeks.

Last week, fuel price adjustments saw diesel increase by as much as P24.25 per liter, gasoline by up to P13 per liter, and kerosene by as much as P38.50 per liter.

To temper the impact, oil firms agreed to roll out the hike on a staggered basis. Companies that spread the hike over a week recorded an average daily increase of around P2.50 per liter for diesel and roughly P5.50 per liter for kerosene.

Some firms, however, implemented the adjustments in just two or three tranches, with the first hike on March 10 already reaching double-digit levels.

The government’s plans

Congress plans to pass this week a bill granting President Ferdinand Marcos Jr. the authority to suspend or reduce excise taxes on fuel for up to six months.

The excise tax on fuel is set at P10 per liter for regular and unleaded gasoline, P6 per liter for diesel, and P5 per liter for kerosene. This is separate from the 12% value-added tax imposed on petroleum products, which minority lawmakers in the House say should also be suspended or removed.

Aside from suspending excise taxes, the Department of Social Welfare and Development and the Department of Transportation will distribute a P5,000 fuel subsidy to transport workers, starting with tricycle drivers in Metro Manila, followed by jeepney, taxi, bus, and transportation network vehicle service (TNVS) drivers.

The fuel subsidy will be released starting March 17, the same day another double-digit fuel price hike takes effect.

The Department of Energy (DOE) also announced its coordination with oil companies in providing fuel discounts for public utility vehicle (PUV) drivers, TNVS drivers, delivery riders and other motorists affected by the price surge.

With these efforts, the government seeks to stop or at least slow down the domino effect of the big-time fuel price hike that could set off immediate increases in the prices of other goods and services, such as food and transportation fares.