Manila: Staggered fuel price adjustments by oil companies could help temper the expected increase in pump prices, a Department of Energy (DOE) official said in a Senate hearing Friday.

According to Philippines News Agency, DOE Oil Industry Management Bureau Director Rino Abad explained that diesel prices could reach PHP80 per liter if oil companies implement the full increase in global oil prices at once. However, staggered adjustments could soften the impact on consumers. He highlighted that spreading the increase over two weeks could result in only half of the increase being applied initially.

Abad further elaborated that if the estimated increase of about PHP18 per liter for diesel is implemented gradually, only about PHP9 may initially be reflected in pump prices. This approach could prevent diesel prices from immediately reaching the PHP80-per-liter level. He also noted that gasoline prices could rise but may only reach PHP60 per liter under a staggered adjustment scheme.

Abad emphasized that dividing the increase could mean an addition of only about PHP4 for gasoline prices. He stated that the DOE has been urging oil companies to consider staggered price increases to ease the burden on motorists, as global oil prices remain volatile amid ongoing tensions in the Middle East.