Continued tensions and possible escalations in the Middle East conflict continue to put pressure on global supplies

MANILA, Philippines – Gasoline prices are set to ease while diesel prices rise for a second straight week starting Tuesday, October 27.

The Department of Energy (DOE) announced the following permitted price adjustments for October 27 to November 2:

• Gasoline – rollback of P0.30 per liter
• Diesel – increase of to P1.20 per liter
• Kerosene – rollback of P0.50 per liter

Photo from Department of Energy briefing.

The adjustments follow last week’s movements, when gasoline prices dropped by P4.30 per liter and kerosene by P1, while diesel increased by P2.60 per liter.

The continued diesel price increases come amid tight international supplies, made worse by renewed attacks on Saudi Arabian energy infrastructure and commercial vessels in the Middle East. Escalating hostilities involving Yemen’s Houthis have threatened alternative oil export routes, while tensions around the Strait of Hormuz continue to put pressure on global supplies.

Oil prices went up on Friday, October 23, with Brent crude rising 3.14% to $116.72 per barrel, its highest settlement in nearly six months.

Local pump prices remain substantially higher than before fighting involving Iran and US-Israeli forces broke out on February 28. In the last full week before the conflict, common Metro Manila prices stood at P56 per liter for RON95 gasoline, P54.70 for RON91, P55 for diesel, and P83.47 for kerosene.

The Philippines imports much of its petroleum requirements as finished products, making domestic prices vulnerable to changes in regional fuel markets, freight costs, and foreign exchange rates.

Meanwhile, excise taxes on liquefied petroleum gas and kerosene remain suspended under Executive Order No. 125, issued by President Ferdinand Marcos Jr. in September. The relief does not cover gasoline or diesel. – Rappler.com