Fuel prices worldwide are increasing due to the global energy crisis, and fuel price Philippines is not an exception. Common fuels such as gasoline, oil, and gas are essential daily. Therefore, the Philippines needs to have action strategies to overcome the rising gasoline prices in recent years.
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Fuel Price Philippines
Importing over 90 percent of fuel yearly, prices in the Philippines are not low. In Manila, gasoline has risen up to 30 percent, while diesel prices are about 66 percent in 2023. A record level is recorded in mid-March 2022 – 81.85 percent for gasoline.
Fuel Price Philippines Updated Today
| Philippines Gasoline prices | *Litre* | *Gallon* |
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Philippines Diesel Prices
Diesel data was reported at 56,772 PHP/l in April 2023. This price has decreased slightly since last month, but the diesel price in the Philippines is quite high overall.
Diesel is used for most types of transport today, from roads, waterways, to railways. Diesel is also used for vehicles with large loads, such as semi-automatic forklifts, diesel forklifts, gas turbines, etc. The use of diesel is quite wide, so when the price of this material increases, other domestic activities also face price difficulties.
The global diesel supply is dwindling as refineries lost capacity last year due to the COVID-19 pandemic, while the economy is recovering rapidly, leading to higher gas, coal, and crude oil prices.
Philippines Gasoline Prices
In 2022, the price of gasoline in the Philippines will increase to 4.95 pesos/liter. Like diesel prices, gasoline prices are adjusted regularly every month, but generally, this number is still high compared to other countries. Meanwhile, Singapore has a high gasoline price of 2.26 USD/liter, Thailand (1,506 USD/liter), and Laos at 1,654 USD/liter.
The Philippine Department of Planning, Economic and Social Affairs proposed a 4-day workweek plan to save energy and reduce work-related costs in the context of many times increased fuel prices.
Every Filipino will still work 40 hours per week. But instead of working five days, it will be reduced to four days and each day. In the case of working 8 hours, it will be increased to 10 hours.
This measure helps people reduce travel fuel costs and save energy for the country. However, this is not necessarily a good method in the long run.
Philippines Kerosene Prices
Unlike gasoline and diesel prices, kerosene prices also increase but less and do not regularly increase over the month. With a minimum of 67.06 Philippine Pesos on May 15, 2023, and a maximum of 74.53 Philippine Pesos on February 20, 2023, the average value for the Philippines during that time was 70.61 Philippine Pesos.
Why Is Fuel Expensive In The Philippines?
OPEC and Petroleum Exporting Countries claimed that they would not increase production, so oil prices are constantly pushed up.
This plan brings benefits from high prices instead of increasing production volume as demanded by major oil-consuming countries such as India or The US.
Another one leading to suffering from an energy crisis was an early cold and harsh 2021-2022 winter. Countries increasing their petroleum reserves cause oil prices to rise.
In the context of strong economic acceleration and geopolitical uncertainties, fuel prices have risen to high levels, far exceeding all previous predictions, the risk of increasing further if war breaks out on the Ukrainian border or the US embargo prevents Russia from selling crude oil. Currently, there are no signs that fuel prices will be stabilized soon; the prospect of price reduction is even more remote.
The domestic gasoline price replies greatly to the world gasoline price because the domestic petroleum supply is not enough to meet the economy’s demand.
FAQs
Where Do The Philippines Get Their Fuel?
Because they import crude oil, the Philippines are impacted by changes in the world market. More than 90% of crude oil is bought from countries in the Middle East.
All of the ports for imports and exports are located in Luzon. In the Philippines, there are two refineries: one in Bataan (Petron) and one in Batangas (Shell). The ports of Subic (Zambales), Clark (Pampanga), Tabangao (Batangas), and San Pascual (Batangas) are where refined oil products are imported and exported.
What Is The Cleanest Fuel In The Philippines?
The Philippines is one of the island nations believed to be the most vulnerable to climate change. With limited oil and coal resources, but abundant wind, solar, and water energy, the country is considering a capital investment in renewable energy as a necessary and strategic move in the coming years.
The Philippines is estimated to have about 246,000 megawatts (MW) of untapped renewable energy. The country has the third-largest geothermal capacity in the world, with 1,900 MW, followed by Indonesia and first by the United States.
Why Is Diesel More Expensive Than Gasoline In The Philippines?
In the world market, from the beginning of 2022 until now, the supply of gas to the European and American markets has decreased due to the conflict between Russia and Ukraine. As an alternative to gas, demand for diesel and kerosene increased, leading to higher oil prices.
In addition, to prepare for the demand for fuel in the winter, people in many countries are gradually turning to diesel, so the price of this item increases sharply and is much higher than the price of gasoline.
In the gasoline and diesel price structure, the tax rates and normative costs are very different between the two types of gas and diesel. Because the world diesel price is much higher than the gasoline price, the retail price of diesel in the country for the first time exceeds the price of gasoline.
Conclusion
Fuel price Philippines is increasing due to fluctuations in fuel prices worldwide and economic and socio-political factors affecting raw material supply.
However, due to its abundant natural resources, the Philippines is also planning to develop green and renewable energy sources to reduce the cost of gasoline.
