Philippine fuel prices hit record highs as food inflation fears grow
With diesel in the triple digits amid the Iran war, Filipinos brace for a domino effect on rice, electricity and basic household necessities
Mario Orain used to earn his living on the road. Now, the 51-year-old driver spends most of his time parked up, waiting for bookings that rarely come.
“It’s really bad,” he told This Week in Asia. “There are very few bookings. And fuel prices have gone up a lot. It’s very expensive now.”
After weeks of increases, diesel breached the triple-digit mark for the first time on Tuesday – with the Department of Energy warning of prices as high as 114 pesos (US$1.90) per litre in Metro Manila, nearly one-sixth of the minimum daily wage rate for non-agricultural workers in the Philippine capital.
The price surge forced some petrol stations to improvise after the figures exceeded the two-digit capacity of their digital display systems. It also exposed a long-standing vulnerability.
“Unlike some neighbouring countries, the Philippines has limited domestic refining capacity, which means local prices quickly reflect movements in global crude and refined product markets,” said Carlo Asuncion, chief economist at the Union Bank of the Philippines.