Local pump prices could take another hit as the United States has declared a ban on imported Russian oil, which may cause oil prices to rise to as much as $200 per barrel.
Oslo, Norway-based consultancy firm Rystad Energy said that the ban on Russian oil would remove around four million barrels a day from the global market, which could worsen supply conditions.
Right after US President Joe Biden declared a ban on Russian fossil imports, which included oil, a CNBC report said that WTI crude oil and Brent crude oil both jumped to $123 per barrel.
As of March 11, Manila Time, Dubai Crude oil prices were at $110 per barrel.
Local oil prices are already seen to rise next week, as trading prices in the global market are rising three days into the week.
Oil price analysts said that there is “no sign of relief for the current oil price rally” and that Biden’s decision on the ban on oil, coal, and liquefied natural gas imports has added to the upward pressure in oil markets.
To help mitigate the rising oil prices, House energy committee chairman and Pampanga Rep. Juan Miguel “Mikey” Arroyo has called for the suspension of the fuel excise tax, saying that the loss in the suspension can be compensated by the windfall profit earned through the extra collection from the value-added tax, as well as the excise tax included in the series of oil price hikes in the previous weeks.
Meanwhile, House economic affairs committee chairperson and AAMBIS-OWA partylist Rep. Sharon Garin estimated that at least Php6 per liter would be removed from current oil retail prices should the fuel excise tax be suspended. The Department of Finance has bucked calls for the suspension of the said tax.
Garin has also supported the Department of Energy’s call to review Republic Act 8479 or the Oil Deregulation Law in order to include the unbundling of oil prices as well as the minimum inventory requirements provision.
For the tenth straight week, local oil prices have jumped on Tuesday by as much as Php3.80/liter for gasoline, Php5.85/liter for diesel, and Php4.10/liter for kerosene.