Jericho Petilla, former Secretary of the Philippines Department of Energy, warns that fuel prices will remain high for an extended period even after the Middle East tensions subside and government mitigation measures are implemented.
In a recent interview, Jericho Petilla, the former Secretary of the Philippine Department of Energy (DOE), advised the public to prepare for persistently elevated petroleum product prices despite the potential resolution of the conflicts in the Middle East. He emphasized that factors such as infrastructure damage to refineries and oil extraction facilities in the region contribute to the sustained high costs. Petilla forecasted that diesel prices would hover around or above 100 Philippine pesos per liter, with gasoline prices slightly below that mark once the situation stabilizes.
Petilla explained that the ongoing increase in oil prices stems largely from geopolitical tensions abroad, with no clear indication when these issues might resolve. He urged consumers to adjust their oil consumption and spending habits accordingly, referring to the situation as a “world crisis” requiring sacrifice to survive.
While the government has introduced measures like temporary tax suspensions and targeted subsidies to alleviate the burden, Petilla cautioned that these efforts offer limited relief. Removing excise taxes and value-added tax (VAT) on fuel, for instance, could substantially reduce government revenue, potentially affecting infrastructure spending and other programs. He noted that sustaining fuel prices at pre-crisis levels would cost the government approximately three trillion pesos annually, an expense currently unaffordable.
Consequently, Petilla highlighted the importance of demand management as the most viable approach at this time, advocating for adjustments in consumption rather than expecting a return to previous low prices. These insights were shared during his appearance on the program “On Record” on Unang Hirit.
This development is significant for Filipino overseas workers and residents who rely heavily on petroleum products, as they may face longer-term impacts on transportation and commodity costs despite geopolitical improvements in the Middle East.
Sources referenced:
- https://www.gmanetwork.com/news/balitambayan/balita/982935/fuel-prices-di-agad-babalik-sa-dating-presyo-kahit-matapos-na-ang-gulo-sa-middle-east-ex-doe-chie/story/
