go through Chloe Mari A. Hufana and Sheldeen Joy Talavera, reporter
Ferdinand R. Marcos, Tip
“We have started to assume that oil prices will actually rise, and I can’t see how [they] Mr Marcos told reporters while inspecting a burnt primary school in Quezon City that this would not be stopped because the Strait of Hormuz would be blocked.fice. “The price will definitely be affected.”
He noted that the Philippines has expanded fuel subsidies during the coronavirus pandemic, and it may need to do it again if tensions among the major Middle East powers trigger a sharp rise in oil prices.
He added: “We will have to do the same for those who are seriously affected by instability in oil prices (stakeholders). Yes, it’s a serious problem.”
The Department of Energy (DOE) earlier said the government was ready to introduce fuel subsidies to transport operators and farmers to curb the wider impact of high fuel costs on the prices of basic goods and services.
Oil prices extended Wednesday’s gains, with Brent crude futures rising 0.3% to $76.67 a barrel, while U.S. crude rose 0.43% to $75.16 a barrel, according to Reuters. Both jumped more than 4% in the previous session.
Orders from the Philippines to maintain fuel stocks for at least 30 days to help stabilize local supply. If global crude oil prices violate losses of $80 per barrel threshold, fuel subsidies for public transport drivers and Fisherfolk will be automatically triggered.
Oikonomia Advisory and Research, Inc. Oil prices may attract attention because it may cause inflation, said Reinielle Matt M. Erece, an economist.
“If oil prices rise sharply, these effects may take some time to feel, but they will be felt in a few months. In addition to the war causing supply disruptions, speculation about oil could also lead to price increases, which could worsen oil inflation.”
Mr Erece said short-term government intervention will alleviate the impact of high oil prices on consumers and control inflation.
In addition to rising oil prices, weaker peso may also lead to higher inflation.
The peso weakened P56.98 at its seventh straight meeting on Wednesday, down 28 from Tuesday’s P56.70 endpoint. This is the weakest effect of local troops in two months, or since it was closed on April 14, when it was closed on P57.08.
So far, the Peso is still up 1.51% from its closing P57.845 at the end of 2024.
“Both factors will lead to a certain extent of inflation and have the potential to lower tax rates in the future of the Federal Reserve and BSP (Bangko Sentral Ng Pilipinas). This could further lead to higher global oil prices and inflation if the Israel-Iran war escalates.”
Using EV
Meanwhile, the government should accelerate the adoption of electric vehicles (EVs), rapid-track renewable energy development, and reduce its dependence on imported oil in the Middle East conflict.
“The cyclical crisis in the Middle East should force the government to accelerate the transition to electric or hybrid vehicles to protect the public from the sharp and severe impacts of regional tensions,” Terry L. Ridon, convener of the Think Tank Infrawatch PH, said in a Viber message.
He added that the crisis should prompt the power sector to establish power generation facilities Not relying on imported fossil fuel sources.
“The re-energy sector should receive more incentives, more investment and more government support,” he said.
Robert Dan J. Roces, an economist at SM Investments Corp., said the recent incident “emphasizes the fragility of the Philippines to the shock of oil prices and should serve as a wake-up call to accelerate energy diversification.”
“While fuel subsidies provide short-term relief, we must strive to seek long-term resilience, such as investments in renewable energy, liquefied natural gas (lung natural gas) infrastructure and energy efficiency, while modernizing transportation and power systems to reduce dependence on imported oil,” he said in a Viber message.
Mr Rox said good subsidies from bullseye could help mitigate the impact of high oil prices.
“This new crisis reminds us that energy security is not only an economic issue, but also a strategic priority,” he said.
Professional services company Reyes Tacandong & Co. Jonathan L. Ravelas, a senior adviser for the Middle East, said the Middle East crisis clearly reminded the country that it must reduce its dependence on imported oil.
“While fuel subsidies help in the short term, we need to quickly endurance energy, improve public transportation and build energy resilience,” he said in a Viber message.
Pump prices are expected to rise next week, based on a two-day average in Singapore’s Platz. Diesel is expected to rise at P3.40 to P3.60; one industry player said and gasoline is P2.30 to P2.50 per liter.
Jetti Petroleum, Inc.
Mr. Bellas said the company chose to serve stations with discounted lanes for utility vehicles and transport network vehicles.
“Most JETTI radio stations are already significantly discounted at the current price position in various trade sectors. However, if further discounts are still available, we will continue to monitor market conditions and the company’s capabilities,” he said.
On Tuesday, oil companies implemented p1.80 per liter for gasoline and diesel, and kerosene implemented p1.50 per liter.
The latest price increase has adjusted the year-to-date gasoline to P6.90 per liter and the diesel to P6.65 per liter. Meanwhile, kerosene prices have fallen by P0.75 per liter since January.
