Oil Prices Could Surge Up to P10 per Liter Amid US-Iran Tensions, Warns DOE
The Department of Energy – Oil Industry Management Bureau (DOE-OIMB) has issued a stark warning that petroleum product prices may rise by as much as P10 per liter in the coming weeks. This potential increase is directly linked to ongoing tensions between the United States and Iran, which are significantly impacting the global oil market.
Impact of Crude Price Hikes on Local Fuel Costs
According to Rino Abad, director of the DOE-OIMB, if crude oil prices increase by USD20 per barrel, motorists could experience substantial price hikes at the pump. He emphasized that the effects on oil prices are already visible from the very first day of trading, indicating a rapid response to geopolitical developments.
Government Prepares Fuel Subsidies as a Contingency Measure
In response to this looming crisis, the DOE is actively coordinating with the Department of Transportation (DOTr) and the Department of Agriculture (DA) to prepare for the possible release of fuel subsidies. These subsidies would be implemented if the price of Dubai crude reaches USD80 per barrel and sustains that level for one month, aiming to alleviate the financial burden on consumers and key sectors.
The situation underscores the vulnerability of local fuel prices to international conflicts and market fluctuations, prompting proactive measures from government agencies to mitigate economic impacts.
