Manila: The new round of sanctions from the United States and the United Kingdom on Russian oil will be affecting local oil prices, with hefty price hikes set Tuesday. Caltex, Cleanfuel, Petro Gazz, PTT, Seaoil, and Shell will increase gasoline prices by PHP1.65 per liter and diesel prices by PHP2.70 per liter. Kerosene prices in Caltex, Seaoil, and Shell will also go up by PHP2.50 per liter. Other oil firms are expected to follow suit.

According to Philippines News Agency, the Department of Energy (DOE) said gasoline prices in Metro Manila range from PHP52 to PHP76.42 per liter; diesel prices, from PHP49 to PHP73.60 per liter; and kerosene prices, from PHP71.04 to PHP83 per liter. This, as local industry players hiked diesel and gasoline prices by 80 centavos and 90 centavos per liter, respectively, and PHP1 per liter for kerosene. This is the second price adjustment for the year 2025. Gasoline and kerosene have a total net increase of PHP1.80 per liter; diesel has a total net increase of PHP2.30 per liter, the DOE said.

In a DOE bulletin posted Monday, the agency explained what consumers pay for a liter of fuel. For a liter of gasoline with a common pump price of PHP69.25, 41 percent or PHP26.29 is attributed to import cost; 26 percent or PHP17.75 for industry take-the amount comprising the recovery of all operating costs and profit margin of the oil company; 25 percent or PHP17.42 to taxes; and 8 percent or PHP5.79 to ethanol. Import cost for diesel has a higher share of 50 percent, taxes at 21 percent, industry take at 15 percent, and coco methyl ester (CME) at 5 percent. Since October last year, the government mandated all diesel products to have at least 3 percent CME blend (B3).