Skyrocketing oil prices


Oil companies have raised the prices of petroleum products eight times over the past eight weeks. These raised gasoline and diesel prices by ₱19.70 and ₱18 per liter respectively since the start of 2020.

In the coming months, prices of food and other consumer goods will certainly spike because of these increases.

Oil price hikes are being attributed to increases in the price of crude oil in the global market which has soared to $80 per barrel. Crude oil prices are rising in the face of the refusal of the Organization of Petroleum Exporting Countries, Russia and its allies to increase production. This is amid rising demand for crude oil in China and Europe.

In the Philippines, oil companies refuse to disclose the formula used in setting prices, and computing price increases concomitant to adjustments in global market prices. In response, the Makabayan bloc filed a bill seeking transparency in the determination of domestic oil prices and to specify details in the process of price increases.

Similarly, the government is being urged to junk the ₱10 per liter tax on oil which the regime levied in May 2020 amid the pandemic which purportedly aims to raise funds for subsidies. They also urged the government to junk the ₱10 per liter excise tax on gasoline, ₱6 on diesel and ₱3 per kilo of LPG, which were levied on top of the 12% value added tax.

Skyrocketing oil prices