By: The Negros Times
The Department of Energy (DOE) and local oil companies in Philippines has announced a huge hike in fuel prices, the biggest yet this year, as conflict between Russia and Ukraine sets off global fuel prices skyrocketing.
The price of Biodiesel will go up by P5.85 per liter, while Unleaded Gasoline will increase by P3.60 and Kerosene by P4.10 per liter, respectively.
The price hike of Gasoline had gone up by 31.3 percent, Diesel by 44.1 percent, and Kerosene by 34.2 percent from last year.
It may not be the highest yet for the steep surge in fuel prices if global oil prices keep increasing which is expected to reach its peak by next week.
Governor Benjamin Diokno of Bangko Sentral ng Pilipinas (BSP) said the oil price rise could trigger inflation. Diokno added that if global oil prices reach $120 to $140 per barrel this year, inflation could hit 4.4 to 4.7 percent. The BSP earlier said inflation for this year could settle within the 3.7 to 3.4 percent range.
"The main channel through which the Russia-Ukraine war could affect the Philippines is higher oil prices. Global oil prices have already exceeded $90 per barrel and previous episodes of oil price surges suggest that oil prices could increase further," he said.
From year-to-date so far, price adjustments have totaled P11.65 per liter for Diesel and P9.6 per liter for Gasoline.