Surge due to rising fear Iran-Israel war could worsen

Oil firms have raised fears of a “hefty” price hike next week that could likely reach as much as P3 based on Monday’s Mean of Platts Singapore (MOPS) trading, as prices soared globally Tuesday with the crisis in the Middle East continuing to instill uncertainty.

 The Department of Energy on Tuesday appealed to industry players to “implement staggered fuel price adjustments” as Malacanang assured the public measures are in place to cushion the impact on local consumers as well as transport operators and drivers.

“Our immediate priority is to ensure that our fuel supply remains stable and sufficient, and that any local price adjustments are managed in a way that minimizes disruption to our economy. Through close coordination with the oil industry and strict monitoring of inventory levels, we are working to maintain energy security while preparing targeted interventions to support the most affected sectors,” DOE officer-in-charge Sharon Garin said.

Presidential Communications Office Undersecretary Claire Castro said should crude prices exceed $80 per barrel, government fuel aid for public transport drivers and fisherfolk will be automatically triggered. As of June 16, the price of Dubai crude was at US$73 per barrel.

“If prices rise sharply, the government will act quickly to provide assistance,” Castro said.

The Palace official said the DA is also ready to import fertilizers from other countries, such as Brunei, in case there is disruption in Gulf shipping of the supply from Qatar.

Qatar, one of the Philippines’ major suppliers, sits only 510 miles from Iran.

Under this year’s budget allocation, the DOE has P2.5 billion for fuel subsidies to drivers of public utility vehicles, taxis, ride-hailing services, and delivery platforms nationwide. The DA, on the other hand, has P585 million which can be used to support farmers and fisherfolk in the agricultural sector who may be adversely affected by rising fuel prices.

Jetti Petroleum president Leo Bellas said while there are still four more trading days for the week, if Monday’s MOPS shall be the basis, diesel prices have already gone up by more than P3 per liter while gasoline increased by P2 per liter.

“While it is too early to provide figures, the potential increase on pump prices will be quite hefty if Monday’s MOPS prices are used as reference for this week,” Bellas said.

Garin and Undersecretary Alessandro Sales, who supervises the DOE Oil Industry Management Bureau, conducted inspections of oil depots in Manila on Tuesday to ensure that oil firms maintain the mandated 30-day inventory of crude oil and a 15-day inventory of finished petroleum products.

Editor’s Note: This is an updated article. Originally posted with the headline “Big-time oil price hike looms amid crisis in Middle East.”