Philippine fuel prices to rise this week as inventory falls to 45 days

The Department of Energy announced on Monday that pump prices for diesel and gasoline will increase this week while kerosene prices will decrease. Beginning Tuesday, May 19, diesel prices will rise by around P2.82 per liter and gasoline prices will increase by P1.21 per liter. Kerosene pump rates will drop by at least P2.21 per liter.

Price adjustments and inventory levels Energy Secretary Sharon Garin said the department sets the maximum amount oil companies can raise pump prices. She explained that the amounts are based on replacement cost, freight insurance, premium cost, and transportation.

Last week’s price adjustments left gasoline prices in Metro Manila between P71.80 and P99.08 per liter, diesel between P69.40 and P89.91 per liter, and kerosene between P112.88 and P150 per liter. The department reported that the country’s fuel inventory can now last 45.33 days, down about five days from the previous week’s average of 50.70 days.

Supply outlook Garin stated that the decline in inventory is not a cause for concern because the international supply chain is becoming more predictable. She said the country is assured of supply from other countries. According to the department’s oil monitor as of May 12, crude oil prices fell after the United States proposed a peace plan to ease tensions in the Middle East.

The decline was short-lived due to pessimism over the deal’s outcome. Association of Southeast Asian Nations leaders met in Cebu on May 7 to 8 to discuss fuel supply concerns arising from the situation in the Middle East. President Ferdinand Marcos Jr.

said the closure of the Strait of Hormuz underscored the need for a regional reservoir that ASEAN countries can tap during crises.