The Department of Energy (DOE) has warned that average domestic pump prices of fuel products may reach P100 per liter if the global price of oil reaches $200 a barrel.
Per monitoring of oil trading based on the Mean of Platts Singapore, an oil industry source showed that the price per liter of diesel may surge by P12.72 per liter, while gasoline prices are estimated to hike by more than P8 per liter in the coming days.
This will definitely add inconvenience to the ordinary consumers’ burden due to surging prices of basic commodities.
In Palawan, fuel prices are already more than P10 compared to other provinces, and enormous fuel price hike made things worse for the most affected sectors—-transport and agriculture.
Few years ago, both the Sangguniang Panlalawigan of Palawan and the Sangguniang Panlungsod of Puerto Princesa called on the DOE to conduct an investigation due to the P10-P15 per liter difference of fuel prices in Puerto Princesa City and throughout Palawan compared to other cities and provinces in the country. We have not heard yet on the DOE’s action on this matter.
Higher fuel prices have definitely a ripple effect on the broader economy, in tourism, agriculture, and the transport sector.
Every time that there is an oil price increase, anyone consuming petroleum products – like bus operators, jeepney and multicab operators, tricycle drivers, and private car owners – will definitely feel its agonizing burden. Because of this, ordinary people will be discouraged to travel or commute.
The microeconomic implications of higher oil prices will be disastrous, specially to majority of our countrymen who wallow in poverty.
When there is fuel price hike, a big share of households’ budgets is likely to be spent on it, which leaves only less to spend on other basic commodities, other household needs and services.
The same goes for companies, business establishments and even micro enterprises whose products and goods require shipment.
Public transport sector too will feel the brunt of fuel prices increase since it is highly dependent on gasoline, diesel and other fuel products, for them to continuously operate.
Palawan’s towns and villages are scattered geographically, in fact many of its barangays are isolated in far-flung islands. Locals are highly dependent on gasoline and other fuel products, not only for their motorcycle, tricycle, topdown, habal-habal, motorized boats, but also for their generator sets, water pumps, and other farm machineries.
One of the possible domino effect of oil price hikes is on electricity rates, especially in off-grid isolated islands in some towns of Palawan.
Higher fuel prices also make food production more expensive, therefore triggering the prices of agricultural and fishery products in the locality to escalate.