A significant increase in oil prices driven by new sanctions from the United States and the United Kingdom on Russian oil is set to take effect on Tuesday, 21 January 2025. Local oil prices will see an increase, with major oil companies such as Caltex, Cleanfuel, Petro Gazz, PTT, Seaoil, and Shell raising gasoline prices by PHP1.65 per liter, while diesel prices will rise by PHP2.70 per liter.

Additionally, kerosene prices will also go up by PHP2.50 per liter in Caltex, Seaoil, and Shell stations.

Other oil firms are expected to follow the price adjustments. The Department of Energy (DOE) reported that gasoline prices in Metro Manila will range from PHP52 to PHP76.42 per liter, diesel prices will range from PHP49 to PHP73.60 per liter, and kerosene prices will range from PHP71.04 to PHP83 per liter.

This hike follows the earlier price adjustments made by local oil industry players, which increased diesel and gasoline prices by 80 centavos and 90 centavos per liter, respectively, and kerosene by PHP1 per liter.

“This is the second price adjustment of the year 2025. Gasoline and kerosene have a total net increase of PHP1.80 per liter, while diesel has a net increase of PHP2.30 per liter,” the DOE stated.

In a DOE bulletin issued on Monday, the agency explained the breakdown of what consumers are paying for a liter of fuel. For a typical liter of gasoline priced at PHP69.25, 41% (PHP26.29) is attributed to import costs, 26% (PHP17.75) to industry take, 25% (PHP17.42) to taxes, and 8% (PHP5.79) to ethanol.

For diesel, 50% of the cost is attributed to import costs, 21% to taxes, 15% to industry take, and 5% to coco methyl ester (CME). Since October of last year, the government has mandated that all diesel products must contain at least a 3% CME blend (B3). 𝑃ℎ𝑖𝑙𝑖𝑝𝑝𝑖𝑛𝑒 𝑁𝑒𝑤𝑠 𝐴𝑔𝑒𝑛𝑐𝑦