Another hike for gasoline; diesel prices to go down

National

ANOTHER gasoline price increase looms next week, as lingering supply concerns linked to China’s temporary halt in refined fuel exports contrast with expectations of lower diesel prices.

Based on four days of trading in the Mean of Platts Singapore (MOPS), the regional benchmark for petroleum products, gasoline prices could climb by P2 to P2.20 per liter on Oct. 13, while diesel prices may decline by P1.80 to P2 per liter.

Rino Abad, director of the Department of Energy’s (DOE) Oil Industry Management Bureau, said the expected diesel price rollback follows the G7 countries’ decision to release 100 million barrels of crude oil and diesel from their emergency reserves.

Jetti Petroleum president Leo Bellas said gasoline prices remain under pressure because of supply constraints stemming from China’s temporary suspension of refined fuel exports. Reuters, citing unnamed sources, reported that China could resume refined fuel exports within the month.

Beyond immediate price movements, Bellas said the Philippines needs major infrastructure changes to reduce its dependence on oil. Under the government’s Fuel Transition Plan, the country aims to cut oil dependency by 30 percent by 2030, 50 percent by 2040 and further by 2050.

Energy Secretary Sharon Garin said this week that the government would aggressively promote electric vehicle (EV) adoption to help meet these targets. The plan envisions EVs accounting for 80 percent of automobile production between 2040 and 2050. President Marcos, however, said in his fifth State of the Nation Address that electric-powered vehicles could make up half of the cars on Philippine roads by that period.

The plan also promotes high-blend biofuels, sustainable aviation fuels and alternative maritime fuels. Bellas said achieving the targets would require expanding renewable energy and other electricity sources that do not rely on fossil fuels.

“If the government would push through with renewable energies and those sources of electricity that would not be using fossil-based fuels, I think that could be realistic,” Bellas told “Money Talks” on One News, as quoted by Philstar.

The government aims to raise renewable energy’s share in the country’s energy mix to 50 percent by 2040.

Meanwhile, EV registrations surged 130 percent year-on-year from January to August, according to Patrick Aquino, director of the DOE’s Energy Utilization Management Bureau. He said the war in the Middle East contributed to the increase as more people turned to electric-powered vehicles.(MyTVCebu)