FUEL PRICES ALMOST DOUBLE SINCE JUNE 2017

 

Graph shows average diesel fuel prices in Metro Manila climbing sharply since July 2017. Source: Dept. of Energy

 

Domestic fuel prices have jumped by more than half to almost double in some areas since July 2017.

 

This is what a review of the socially sensitive diesel fuel prices reveals as the average Metro Manila price of the fuel type was compared from July 2017 to the present using data from the Department of Energy (DOE)website.

 

The DOE takes a periodic average of prevailing fuel prices, with some areas posting a wider price difference on the same commodity within the same time period.

 

In some areas outside Metro Manila like Valencia Bukidnon, Diesel prices have brrached 51pesos per liter, almost double from last year.

Photo: Diesel prices pushing beyond 51 pesos (Valencia, Bukidnon, May 31, 2018)

Reasons given for this jump is the decision of the Organization of Petroleum Exporting Countries (OPEC) to scale down production, raising global prices by about 40 percent or about 20 dollars per barrel, testing the 80 US dollar per barrel limit .

 

TRAIN not to BLAME

 

Seeing these results prompt many to take a second look at the criticism of the TAX reform for Acceleration and Inclusion (TRAIN) Law, which militant groups and other critics claim is the cause of our inflation rate breasing governments higher limits.The one to two peso excise tax levied on diesel is less than 9% of the almost 25 -30 peso increase in fuel prices. This, economists note, push up prices and expand inflation.

 

SAUDI DECISION MAY HELP EASE PRICES

 

In a recent development as reported by Bloomberg news, Saudi Arabia is reported to have resumed higher production levels, a move seen to ease global oil prices ahead of similar moves reportedly being considered by the United States, Canada and Russia. This move may encourage other oil producing countries to follow suit.