The Department of Energy (DOE) on Tuesday said that the public may need to endure high oil prices until the end of the year as global crude supplies remain tight.
DOE Oil Management Bureau Director Rino Abad said that earlier this year, the Organization of the Petroleum Exporting Countries (OPEC) cartel along with Russia slashed oil production.
Based on OPEC’s projections and the forecast of the International Energy Agency, Abad said, the reduced output from oil producers will persist “until the end of the year.”
Last month, the fuel shortage peaked at 3 million barrels per day, but the IEA said the projected shortfall may go down to 500,000 barrels per day before the end of the year, he said.
Even if supply problems ease, oil prices may continue to rise before the year ends, but the hikes will be smaller.
Pump prices increased for the 11th straight week on Tuesday. Since July 11, diesel prices have increased by P17.30 per liter, gasoline by P11.85 per liter, and kerosene by P15.94 per liter.
House Speaker Martin Romualdez has asked oil companies to bring down prices and called on the government to suspend excise taxes and VAT on fuels. Meanwhile, Finance Secretary Benjamin Diokno opposed the latter saying it would damage the economy.
Source: PhilNews24 | September 20, 2023
