By Alden M. Monzon
Back in Dec. 22 2021, the day which marked the last day of the Department of Energy’s (DOE) retail price monitoring report for the year, gas stations in Metro Manila were found to be selling gasoline from P50.90 to P70.95 per liter, and diesel from P41.90 to P56.72 per liter.
In stark and worrying contrast, the department’s most recent price monitoring last Dec. 3 puts the retail pump prices of gasoline from P56 to P80.77 per liter, while the cost of diesel ranges from P62 to P81.75 per liter.
Despite the numerous price rollbacks implemented by gasoline companies in the last twelve months, in the end, this meant an increase of P5.1 to P9.82 per liter for gasoline and a P20.1 to P25.03 per liter for diesel.
For a typical family man like 35-year-old June Sayo, who drives around a lot due to the demands of his job as a feed ingredient trader, that’s a pretty hefty chunk of money added to his monthly expenses
Sayo said he spends P22,800 for fuel monthly, equivalent to about 544 liters of diesel.
This means he now incurs an additional P2,774 per month, at the least, to P5,179 per month, at the most, because of the price adjustments in diesel this year.
“I can’t really do anything about this since I need to travel,” said Sayo.
Electric vehicles as a solution
A local industry group of electric vehicle manufacturers has presented the sector as a relief to rising gas and oil prices brought about by the move of the Organization of the Petroleum Exporting Countries (OPEC) to cut back on daily oil production back in October.
Electric Vehicle Association of the Philippines (EVAP) president Edmund Araga said back then fuel prices were accelerating after the coalition of oil-producing nations led by Saudi Arabia decided to decrease output by 2 million barrels per day.
“There is no other better time than today. Why? Because fuel prices are accelerating in the world market, which of course, is affecting us here in the country. The outlook is not good,” Araga said.
“Crude supply can dwindle and even totally run out in the foreseeable future. But electric energy is here to stay. We hope we can stop being too reliant on fuel in the near future so that no matter how oil producers want to manipulate supplies and prices, no matter what conflict arises in the Middle East, Europe, or elsewhere, we all could move forward,” he said further.
The EVAP official said this problem is compounded as well by volatile foreign exchange movements, which includes the continuous weakening of the Philippine peso against the U.S. dollar.
The electric vehicle sector is still relatively small in the Philippines, nearly comprising two percent of the total vehicle sales in the country.
Sales forecast from Data from the Chamber of Automotive Manufacturers of the Philippines, Inc. (Campi) and the Truck Manufacturer’s Association (TMA) say that the electrified vehicle segment is projected to reach 2,256 unit sales in 2022, which will mean a 1.68 percent market share.
Electrified vehicles -which includes hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs) and battery electric vehicles (BEVs)- had a .02 percent (86 vehicle units) share in 2019 and a .31 (810 units) percent share in 2021.
Consumers group wary for 2023
Rey Dulay, chairman of the consumer advocacy group Rights Action Philippines (RAP), said the continuous and uncontrolled price hikes of petroleum products since June of 2022 brought serious negative impact and hardship to all Filipino consumers.
“As expected, it was a domino effect and this is one of the primary contributing factors that triggers the inflation. But since Filipino culture is to be ‘matiisin,’ we rather choose to accept the fact that we cannot do anything about it,” Dulay told the Inquirer.
Still the RAP official said the government can help cushion the impact by reducing or suspending the excise taxes on petroleum products.
“The uncontrolled fuel hike in 2022 is a manifestation that our government is not ready or does not have an emergency or contingency plan in addressing this matter,” he added.
Dulay said that although fuel prices have been dropping recently and there is a forecast of lower prices for petroleum products in 2023, he noted that it is just a projection and not a guarantee of things to come in 2023.
“One of the reasons gas prices surged in 2022 was the eruption of the Ukraine conflict, however, that conflict is still unresolved. So, it is very hard to say that we can expect a lower fuel price in 2023,” said the RAP chairman.
The World Bank has warned that Russia’s continued conflict with Ukraine has caused major disruption in the supply chains across the globe, contributing greatly to the huge price rises in goods, which include gas.
