Consumers can expect another round of oil price hike of more than P1 per liter next week due to tightness in global oil supply, according to the latest monitoring of the Department of Energy.
Senator Sherwin Gatchalian on Thursday urged the government to reactivate the fuel subsidy Pantawid Pasada Program to provide relief to the public transport sector and cushion the impact of high fuel prices on the riding and consuming public.
Next week will be the eighth consecutive week of oil price hikes to reflect the movement of prices in the world oil market.
Gasoline has gone up P5.40 per liter while diesel went up by P7.15 per liter for the past seven weeks.
“I am calling on the government to protect our drivers and passengers. The Pantawid Pasada, which government funds, will help absorb the increase in petroleum prices,” Gatchalian said.
Gatchalian likewise called on DOE to monitor the compliance of oil companies on their inventory requirements to ensure adequate supply and help mitigate further price increases in the coming months.
Gatchalian, chairman of the Senate Energy Committee on Energy, said there is a potential average increase of P1,422.50 in the monthly expense of jeepneys for gasoline and a potential average increase of P598.36 for diesel.
To cover for the three-month subsidy of the estimated 178,244 valid franchise holders of public utility jeepneys nationwide, the government will have to shell out at least P914,160,894 million, Gatchalian said.
He added the price of gasoline increased to P58.85 per liter this month compared to P51.25 in October last year while diesel prices rose to P47.90 per liter this month compared to last year’s P35.46.
Gatchalian said the current situation might worsen due to the winter season and the opening of global economies, thus putting a strain on demand.
“We can expect the oil prices will continue to go up due to the increase in oil prices in the global market until the end of the year,” Gatchalian said.