Philippines Fuel and LPG Prices Rise Amid Middle East Conflict

Fuel prices in the Philippines will increase on September 22, marking the third major hike this month. Diesel will rise by P8.82 per liter, kerosene by P6.47 per liter, and gasoline by P4.88 per liter. The Department of Energy attributes these increases to Middle East conflict, specifically a drone attack that damaged Saudi Arabia's East-West Pipeline.

Energy Secretary Sharon Garin certified that the one-month average price of Dubai crude has exceeded $80 per barrel. This threshold allows the government to consider reducing or suspending excise taxes on petroleum products through the Development Budget Coordination Committee.

Simultaneously, liquefied petroleum gas (LPG) prices face upward pressure. Republic Gas Corp. implemented a P4-per-kilogram increase on September 21 following government approval. Looking ahead to October, the LPG Marketers Association projects a potential increase ranging from P10 to P25 per kilogram.

Arnel Ty, president of the LPG Marketers Association, cited international contract price increases of approximately $70 per metric ton and freight costs rising to $300. These costs are driven by shipping disruptions in the Strait of Hormuz and the Bab el-Mandeb Strait. Final October LPG prices will be determined at the end of September.