Soaring pump prices could go even higher, says Energy dep’t
THE ENERGY department warned diesel and gasoline prices are expected to continue to climb, as a prolonged Russia-Ukraine crisis may see global crude prices hitting $120 per barrel.
“We won’t be much affected [by the Russia and Ukraine conflict] in terms of supply, but we will be hurt by the prices… Even [Mean of] Platts Singapore is projecting [crude oil] price might hit $120 per barrel and when the prices in the world market hit [that level], we will be affected,” Energy Secretary Alfonso G. Cusi said during the virtual Kapihan sa Manila Bay forum on Wednesday.
“We will be seeing the price of gasoline hitting above P70 [per liter] and diesel hitting above P60 per liter,” he added.
The Department of Energy (DoE) projected that diesel and gasoline prices may reach P68.70 and P78.33 per liter, respectively, if Dubai crude hits $120 a barrel.
As of Feb. 28 when the Dubai price stood at $96.89 per barrel, the price of diesel and gas stood at P54.20 and P69.28 a liter, respectively.
Global oil prices have been on an upward trend in recent months as many economies showed a strong rebound from the pandemic. However, the Russia-Ukraine conflict is fueling its sharp rise, with global benchmark Brent crude surging past $110 per barrel on Wednesday, Reuters reported.
DoE-Oil Industry Management Bureau Director Rino E. Abad said pump prices are currently at P60-P83 per liter for gasoline, P52-P65 for diesel, and P61-P68 for kerosene.
Since the start of the year gasoline, diesel, and kerosene prices per liter have jumped by P9.65, P11.65, and P10.30, respectively. — Marielle C. Lucenio with Reuters
