MANILA — Motorists in the Philippines and other fuel-dependent economies may face another round of fuel price increases in May, according to mid-month energy projections.
Latest estimates show petrol prices could rise by P2.62 to P2.99 per liter, while diesel may increase sharply by around P9 per liter.
Although the projected adjustments are slightly lower than earlier forecasts, they still signal continued upward pressure on fuel costs.
Projected Mid-Month Adjustments
Petrol 93: +P2.62/L
Petrol 95: +P2.99/L
Diesel (wholesale): +P9.05 to +P9.07/L
Kerosene: +P7.17/L
Energy data indicates these are still early projections and may change before official pricing announcements.
Oil Prices Remain the Main Driver
According to energy market analysts, the biggest factor behind the expected increase is sustained strength in global crude oil prices, which have remained volatile due to geopolitical tensions and supply risks.
While exchange rate movements have added minor pressure, experts say global oil remains the dominant factor behind the expected under-recovery.
Oil markets, which earlier showed signs of oversupply, have tightened again due to global disruptions, briefly pushing prices above $100 per barrel before easing slightly.
Tax Policy Adds Uncertainty
Market watchers also flagged the possible reintroduction of fuel excise taxes that were temporarily reduced as part of government relief measures.
If fully restored, this could add as much as P3 per liter to pump prices, pushing petrol beyond P30 per liter and diesel close to P40 per liter in worst-case scenarios.
Officials have previously said any tax relief is temporary and may be recovered depending on fiscal conditions.
Talking Head Source
Energy analyst data and projections cited from Central Energy Fund (CEF) mid-month estimates and market commentary from Investec Chief Economist Annabel Bishop, as reported by BusinessTech.
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