Fall of peso worsens fuel, power costs in PH

MANILA — Fuel prices in the world market continue to bloat due to the uncertainty brought about by renewed tensions in the Middle East.

But in the Philippines, higher world oil prices are further worsened by a weaker peso against the US dollar.

Factoring in the latest peso-dollar exchange, diesel prices are now up by almost P4/L, while diesel prices are higher by more than P1.50/L.

Diesel – P3.99/L increase
Gasolina – P1.64/L increase
Kerosene – P1.50/L increase

Jetti Petroleum President Leo Bellas said a major factor in the steep increase is the lower value of the peso against the greenback. 

But there are still 3 trading days left that can either bloat or reduce the adjustment for next week.

Aside from diesel and gasoline, the contract price of cooking gas in the world market continues to soar too.

Regasco President Arnel Ty said that as of yesterday, the contract price for liquefied petroleum gas (LPG) has increased by $82 per metric ton, which translates to an increase of P5.00-P6.00/kg, factoring in a weaker peso against the US dollar.

But Ty explained that there is plenty of excess LPG supply in the Philippine market; that’s why a number of major players implemented a huge rollback of P50/regular tank on Monday. 

Ty said some major players may implement the increases in tranches because of a more-than-ample supply due to additional LPG shipments ordered abroad.

Energy Secretary Sharon Garin, in an interview in Singapore, said the DOE will see if the expected hefty price increases in fuel next week will push through, so that it can request oil firms to stagger the price hikes.

Meanwhile, Meralco says it will no longer seek a motion for reconsideration on the decision of the Energy Regulatory Commission regarding its new distribution charge.

The ERC had approved a P0.13/kwh hike in Meralco’s distribution rate, which has not been changed in more than a decade.

From an average of P1.35/kwh, the new average rate will climb to P1.48/kwh.

This is the charge that goes to Meralco’s coffers.

Meralco spokesman Joe Zaldarriaga says the company will still compute the overall impact of the rate hike to consumers, considering that the regulator has also been ordered to refund P2.64 billion due to over-recovery, which will also begin in the November 2026 billing.

ERC chairman Niño Juan says the peso’s slide is also a concern for the power industry, as many generating plants use imported fuel to produce electricity, aside from the other cost inputs that also require US dollars.

“We are alarmed definitely and as regulator naman we’re quite sensitive naman as to what the impact of this will be on electricity bills…” said Juan in an interview with journalists in Singapore.