FUEL prices went up Tuesday because of rising tensions in the Middle East.
The per-liter price of gasoline will increase by 45 centavos, diesel by 90 centavos and kerosene by 30 centavos.
The round of increase reflects global market concerns over the recent Israeli air attacks in Beirut, Lebanon, according to the Department of Energy-Oil Industry Management Bureau (DoE-OIMB).
Other factors include the latest economic stimulus of China, which in turn offset the weak demand growth from Europe; and the US crude inventory draw indicating tightening global supplies.
Since January, the price of gasoline has risen by P6.30 per liter and diesel by P2.90. Kerosene has dropped by P6.05 per liter.
The Energy Department announced on Monday it will start requiring local oil companies to implement a 3-percent increase in the coco methyl ester (CME) blend in diesel starting October 1, from the current 2 percent.
The CME blend will increase to 4 percent by Oct. 1, 2025 and to 5 percent by Oct. 1, 2026.
The department said consumers will benefit from the higher CMA blend through an increase in mileage, from the average of 10 kilometers per liter of diesel to less than 11 kilometers.
The savings from the CME blend are also expected to offset a potential increase of around 75 centavos in pump prices, brought about by the said 1-percent rise in the CME blend, according to the DoE-OIMB.
The increase in the CME blend is expected to benefit coconut farmers, biodiesel producers and other stakeholders in the coconut industry, since around 900 million additional coconut nuts are needed to produce 100 to 120 million liters of the higher CME blend.
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