Price hike for gasoline, diesel starting May 19 as fuel supply drops to 45 days

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Energy Secretary Sharon Garin says the country’s fuel inventory was at 45 days, down from 50 days, but she believes this is 'not alarming'

MANILA, Philippines – Pump prices for diesel and gasoline are set to increase this week while kerosene prices are expected to roll back, the Department of Energy (DOE) announced on Monday, May 18.

Beginning Tuesday, May 19, diesel prices will be raised by around P2.82 per liter while gasoline prices will increase by P1.21 per liter.

Meanwhile, kerosene pump rates will drop by at least P2.21 per liter.

Image from Department of Energy

Energy Secretary Sharon Garin reiterated that the DOE sets the maximum amount that oil companies can raise their pump prices, while the rollback rates are the minimum prices.

“Although we determine the amount, we determine the value based on the reported practice of the companies, which is the replacement cost and using the current freight insurance and premium cost also and transportation, averaging all that,” she explained.

Last week’s price adjustments resulted in gasoline prices in Metro Manila at around P71.80 to P99.08 per liter, diesel at P69.40 to P89.91 per liter, and kerosene at P112.88 to P150 per liter.

Inventory down by 5 days

The DOE also reported that the country’s fuel inventory can now last 45.33 days, lower by around 5 days from the previous week’s average 50.70-day supply.

Image from Department of Energy

Despite the decline in fuel inventory, Garin said this is not a cause for concern since the international supply chain is now becoming more predictable.

“The average as of this week is lower than the previous week but this is not an alarming state because we are assured of supply from other countries,” she said.

According to the DOE’s oil monitor as of May 12, crude oil prices fell after the United States proposed a fresh peace proposal to ease tensions in the Middle. But the DOE noted that the decline was short-lived due to pessimissm over the deal’s outcome.

Association of Southeast Asian Nations (ASEAN) leaders met in Cebu on May 7 to 8 where the bloc’s leaders discussed fuel supply concerns arising from the ongoing situation in the Middle East.

President Ferdinand Marcos Jr. said the closure of the Strait of Hormuz underscored the need for a reservoir that ASEAN countries can tap during times of crisis.

– Rappler.com