Pump prices of petroleum products have been increasing relentlessly, to the detriment of motorists, consumers, and businesses. Since January, gasoline prices have risen by P7.95 a liter, diesel by P10.20, and kerosene by P9.10. This is on top of last year’s net increases that amounted to more than P10 a liter. The inevitable results are higher transport fares and a rise in food prices, adding to consumer woes just as the country’s economy is poised to recover from the pandemic.
Prices of imported oil are rising because global supply remains very tight. The cost of Dubai crude — considered as the Asian benchmark — has climbed to around $90 a barrel from just a little above $60 a year ago. Among the factors affecting global supply are the anticipated disruptions due to escalating tension between Russia and Ukraine, the declining reserves of the Organization of Petroleum Exporting Countries cartel, and the low global inventory of crude and refined products.
