Fuel prices rise again for nth time as RP inflation worsens

MANILA, Philippines - Filipinos woke up on Saturday with another increase in the prices of fuel products, the 18th time this year. Prices of diesel and kerosene were raised to P2 a liter, while that of gasoline was increased to P1 per liter. The price hikes were initiated by Pilipinas Shell Petroleum Corp. and Eastern Petroleum Corp at 12:01 a.m.. Shell increased prices of diesel and kerosene by P2 per liter, gasoline by P1 liter, and liquefied petroleum gas (LPG) by P1.50 per kilogram. At 6 a.m., Chevron Philippines Inc., Petron Corp., Seaoil Philippines Inc, and Total (Philippines) also hiked the prices of their fuel products. The increase was implemented after the government reported an 11.4 percent inflation rate in June, the highest in 14 years. High inflation rate weakens the consumers' purchasing power. The National Economic and Development Authority assured that June’s inflation rate “is still within the target of the Bangko Sentral ng Pilipinas’ projection of 7 to 9 percent for the whole year." Besides boosting the country’s average inflation rate to 7.6 percent for the first half, last month’s inflation—higher than May’s 9.5 percent—exceeded BSP’s expectations. Higher than expected increases in consumer prices will add pressure on the Bangko Sentral ng Pilipinas (BSP) to lift interest rates, an economist said on Friday. Benjamin Diokno, a former budget secretary and currently an economics professor at the University of the Philippines, said the country’s monetary authority must take action to shield the poor from high prices of goods and services. “For the poor, the suffering deepens as food inflation goes up to 17.4 percent and rice inflation soars to 43 percent. The pressure for the BSP to take a bolder move intensifies," he said. With June’s inflation figures, “it can’t be business as usual for the Philippine economy," Diokno said. In a bid to control unrelenting hikes in consumer prices, the Philippines’ monetary authority has increased lending rates last month, its first rate hike in two years. - GMANews.TV