Motorists across the Philippines are bracing for higher fuel costs starting today, September 24, 2024, as leading fuel companies announce increases following recent rollbacks. This reversal hints at broader economic strains driven by global dynamics.
Chevron Philippines, Petron, and Shell Pilipinas have raised gasoline prices by ₱1.10 per liter and diesel by ₱0.20 per liter. Cleanfuel will follow suit later this afternoon. According to the Department of Energy’s Oil Industry Management Bureau, the price surge is linked to several international factors, including U.S. interest rate cuts, Middle East geopolitical tensions, maintenance shutdowns in Japan, and subsidy adjustments in Malaysia.
Consumers had enjoyed a brief respite with prior rollbacks—₱1.00 reduction per liter for gasoline and ₱1.30 per liter for diesel last week. Yet, despite these temporary cuts, overall prices have risen: a net increase of ₱4.85 per liter for gasoline and ₱1.75 for diesel year-to-date as of September 17.
The price hikes are not only squeezing household budgets but also poised to ripple through the broader economy, raising transportation costs and potentially lifting goods prices amidst persistent inflation. For Filipino families, already managing tightening financial constraints, the return to higher fuel costs could deepen fiscal challenges.
Industry experts warn that continued volatility in fuel prices could exacerbate economic pressure on consumers. As energy markets react to persistent global issues, governments may face mounting pressure to explore policy interventions that stabilize domestic fuel prices and cushion the economic impact on households.
