DOE Announces Fuel Price Hikes for Christmas Week

OIL PRICE UPDATE – The Department of Energy announced fuel price hikes for the upcoming Christmas week.

According to the Department of Energy’s Oil Industry Management Bureau, Filipino motorists will face an increase in fuel prices starting on Tuesday (December 24, 2024).

The price hikes are based on a four-day trading period of the Mean of Platts Singapore (MOPS), which tracks international oil prices.

Here is the list of projected fuel price hikes:

Gasoline: P0.35 to P0.70 per liter
Diesel: P1.10 to P1.40 per liter
Kerosene: P0.90 to P1.00 per liter

The price increases are primarily driven by several factors. One key reason is the stronger US dollar, which affects the cost of imported goods like oil. Another factor is the recent drop in US crude oil stocks, coupled with ongoing cuts in production by oil-producing nations.

These countries have delayed plans to increase oil production until April 2025, further influencing the price hikes.

The weaker Philippine peso has also been a major contributor to the increased costs, as the local currency reached a near-record low compared to the US dollar recently. Since oil is paid for in dollars, the depreciation of the peso means higher import costs.

Industry experts say the peso’s decline alone could account for around P0.30 of the expected rise in prices. The ongoing conflict in the Middle East continues to cause uncertainty in global oil markets, impacting prices.

The exact price changes will be announced by oil companies on Monday, with the new prices set to take effect the following day.

This increase comes just in time for the holidays, contributing to the burden of Filipino consumers during the Christmas season.

The social media users expressed their reactions to the looming oil price hike: