OIL firms will now literally squeeze blood out of stone from Filipino consumers’ pockets as prices of diesel – the main fuel used by public utility vehicles – will swell up by as much as P1.30 to P1.50 per liter this week.
The expected increase in gasoline prices will be a bit leaner but still significant at P0.80 to P0.90 per liter, while kerosene prices are also anticipated to rise, according to industry players.
The Department of Energy concurred that prices at the pumps will be on another round of upward adjustments this week – a dreaded series in more than two months already.
Given the incessant rise in oil prices, Senate Committee on Energy chairman Sen. Sherwin T. Gatchalian is proposing that the government-sanctioned subsidy under the Pantawid Pasada program be increased to P6,000 monthly per driver – an increase of more than 50 percent from the P2,542 monthly subsidy per driver previously announced by the Departments of Energy and Transportation.
Under the expanded Pantawid Pasada subsidy scheme, the lawmaker also wants not just jeepney drivers covered but also tricycle drivers.
In last week’s trading, Dubai crude, which is the pricing benchmark for Asian markets, went up past $84 (P4,500) per barrel but it eased at $82.78 (P4,450) per barrel towards the close of trading week.
For Brent crude, it seesawed at $84 to $86 (P4,600) per barrel throughout last week, igniting higher probabilities that oil prices may really reach the restive $100 (P5,400) per barrel next year.
With crude prices already breaching the $80 (P4,300) per barrel trigger point as prescribed under the Tax Reform for Acceleration and Inclusion Act, Gatchalian indicated it is about time the government seriously weigh actions relative to the second round of increases in the excise taxes of petroleum products. (Myrna M. Velasco)
