Fuel Prices Expected to Rise Next Week – DOE
Motorists should brace for higher fuel prices next week, according to the Department of Energy (DOE) on Friday. Based on international trading over the past four days, DOE-Oil Industry Management Bureau Assistant Director Rodela Romero shared the estimated price adjustments for petroleum products: Gasoline – Increase of P0.45 to P0.75 per liter Diesel – Increase of P0.30 to P0.60 per liter Kerosene – Increase of P0.15 to P0.30 per liter Romero stated that the expected price hike could be “driven by the increasing Middle East tensions and the intensifying sanctions of US to Iran and Russia.” However, she clarified that final adjustments will be confirmed after the last trading day of the week. Fuel companies typically announce official price changes every Monday, with adjustments taking effect the following day. Earlier this week, oil firms reduced prices per liter by P0.10 for gasoline and diesel, while kerosene dropped by P0.30. Would you like any additional edits or details?
Court Orders RCBC to Unfreeze Philippine Sanjia Steel Corporation Account
Cagayan de Oro City, Misamis Oriental — The Regional Trial Court of Misamis Oriental, Branch 41, issued a decisive order on December 23, 2024, reiterating its earlier resolution and temporary restraining order (TRO) to enjoin Rizal Commercial Banking Corporation (RCBC) and its Lapasan Business Center Branch Manager, Sherlene Seriña, from freezing the account of Philippine Sanjia Steel Corporation. The account in question under the name Philippine Sanjia Steel Corporation, was allegedly frozen by RCBC despite the court’s prior instructions. The court reiterated its December 10 resolution and December 18 TRO, mandating RCBC to desist from actions that would contravene the orders. The case, filed under docket number R-CDO-24-04257-CV, revolves around claims of specific performance and damages against RCBC and Seriña. The plaintiff, Philippine Sanjia Steel Corporation, represented by its Corporate Secretary John Paul Gonzales, alleged undue actions by the defendants and sought judicial relief. Both parties have actively filed submissions, with the Plaintiff Corporation filing a Manifestation on December 19, 2024, and the Defendants responding with a Counter-Manifestation on December 20, 2024. These filings were duly noted by the court. Presiding Judge Jeoffre W. Acebido emphasized compliance with the orders to protect the rights of the plaintiff and ensure adherence to judicial directives. Legal counsels for both parties, including Atty. Alphon Lagamon and Atty. David Rafael B. Mariano, were informed of the developments. The case underscores the importance of safeguarding corporate rights and ensuring judicial orders are respected in financial disputes.
Mayor Treñas Orders Removal of Wires on Diversion Road by January 16, 2025
ILOILO City Mayor Jerry Treñas has set a deadline for public utility companies to remove their wires and poles along the Diversion Road, also known as Senator Benigno S. Aquino Jr. Avenue, by January 16, 2025. This comes after the city government successfully dismantled the tangled wires at Calle Real or JM Basa Street in the City Proper district earlier this January, in line with the city’s Regulation Ordinance No. 2023-006. The ordinance, approved on January 18, 2023, requires public utility providers to relocate their cables underground in designated areas, such as plaza complexes, heritage sites, and major roads. “These unsightly lines, spanning from the service road to the other side, have turned this iconic avenue into a long stretch of what looks like clotheslines, detracting from its beauty,” Mayor Treñas stated on Sunday, January 5. The 14-kilometer Diversion Road in Mandurriao district serves as a key route connecting the city to Iloilo International Airport in Cabatuan. Treñas stressed that the overhead wires disrupt the multimillion-peso investments made by the national government in developing the area’s bike lanes and service roads. “Leaders should not be afraid to do what is needed in the community, even when faced with difficulties. Difficult things can be done if we are united, with clear consciences, working not for any vested interest but solely for the welfare of our beloved Ilonggos,” he added. On January 3, disruptions to internet services were experienced by residents and businesses in the city proper, including the city hall, due to the removal of telecommunication cables along J.M. Basa Street. This also affected real property tax payments, requiring transactions to be processed at City Hall due to the temporary unavailability of offsite payment systems.
Motorists to Face Higher Fuel Prices as Retailers Announce Price Hike for 2025
Motorists will see an increase in petroleum product prices this week as retailers announced a significant price hike on Monday to kick off 2025, following a rollback the previous week. In separate announcements, Seaoil Philippines Corp. and Shell Pilipinas Corp. stated they will raise the prices per liter of gasoline and kerosene by P1.00 each, and diesel by P1.40. Cleanfuel and Petro Gazz will implement the same price changes, excluding kerosene, which they do not offer. The price adjustments will take effect at 6 a.m. on Tuesday, January 7, for all companies, except Cleanfuel, which will raise prices at 4:01 p.m. on the same day. Other companies have not yet announced similar changes for the week. These latest adjustments are in line with earlier projections made by the Department of Energy-Oil Industry Management Bureau (DOE-OIMB), which pointed to extended production cuts until April 2025, increased demand in the US and Europe due to extreme cold weather, and geopolitical risks and trade tensions. Last week, firms rolled back the prices of diesel and gasoline by P0.30 each, and kerosene by P0.90. In 2024, price adjustments resulted in a net increase of P12.75 per liter for gasoline and P11.00 for diesel, while kerosene saw a net decrease of P2.70 per liter.
ERC Sets P25/kWh Price Cap for Backup Power in Reserve Market
MANILA, Philippines — The Energy Regulatory Commission (ERC) has introduced a price cap of P25 per kilowatt-hour (kWh) for backup power offered to the National Grid Corp. of the Philippines. During a recent meeting, the ERC decided to set a minimum offer price of zero per megawatt-hour and a maximum of P25,000 per MWh, equivalent to P25 per kWh, in the reserve market. The price floor and cap represent the minimum and maximum prices that generation companies can propose within the reserve market. “The interim offer price floor and cap shall be reviewed and recomputed one year after its implementation, contingent on the collection of sufficient data from the annual submissions of generation companies,” the ERC stated. Ancillary services (AS), or reserves, are designed to provide backup power, ensuring that the grid maintains balance and stability despite variations in supply and demand. These services help regulate frequency and voltage to keep the system running smoothly. The ERC announced it would conduct a review of the pricing guidelines every five years after the revised rules are implemented or sooner if deemed necessary. In addition, the commission has mandated that generation companies include their weighted average cost of capital in their annual management reports. “Upon collection of sufficient reportorial requirements and data from generation companies, the commission will initiate a review,” the ERC added. The newly established P25 per kWh price cap for reserves is lower than the initial ceiling set by the Department of Energy (DOE) but higher than an earlier recommendation from the ERC. During the reserve market’s initial operation, the DOE implemented a temporary price cap of P32,000 per MWh or P32 per kWh. However, the ERC found this amount “excessive” and decided to implement a more “reasonable” limit to curb inflated prices, prevent excessive profits for AS providers, and protect consumers. Previously, the ERC adopted a price ceiling of P19,000 per MWh or P19 per kWh for reserve trading in the Wholesale Electricity Spot Market (WESM). The reserve market, integrated with WESM, aims to enhance competition and affordability by optimizing schedules and prices for energy and reserves while ensuring grid security and reliability. In March, the ERC suspended billing and settlement in the reserve market after observing a significant rise in reserve costs compared to the previous month. Partial trading resumed two months later, allowing power generators to recover part of the costs incurred during March transactions. Specifically, 30 percent of the transaction amounts were approved for settlement to ensure continuous reserve operations. The ERC fully lifted the trading suspension in July, leading to the market’s full commercial resumption by August. Recently, the ERC approved the collection of the remaining 70 percent of the recalculated reserve trading amounts, totaling P3.05 billion. Recovery of this amount will begin next month and will be staggered over three months for participants in Luzon and Mindanao and six months for those in the Visayas.
Visayan Electric Lowers Residential Rates by P0.68/kWh for Holiday Season, Advises Energy-Saving Practices
Residential consumers of Visayan Electric will experience a reduction of P0.68 per kilowatt-hour (kWh) in their December to January billing cycle. This adjustment lowers the overall residential rate from P12.19/kWh to P11.51/kWh, equating to savings of at least P136 for households consuming 200 kWh. The decrease is primarily due to reduced electricity prices in the Wholesale Electricity Spot Market (WESM), where electricity is traded. While this is welcome news, Visayan Electric emphasizes the importance of managing energy use, especially during the holiday season. “Let us not be too complacent with the recent reduction in the electricity rate, as our usage during the holiday season may be unusually high, resulting in a higher bill despite the decrease in the rate,” cautions Visayan Electric President and COO Raul Lucero. The utility company notes that higher energy consumption during this period is often driven by electronic Christmas decorations, fully-stocked refrigerators, and increased use of appliances like electric fans, air conditioners, and televisions. To help consumers manage their energy use and avoid higher bills, Visayan Electric advises adopting energy-saving practices, such as using LED lights for decorations, turning off unused appliances, and setting air conditioners to energy-efficient temperatures. These small adjustments can significantly reduce electricity consumption during the holidays.
State of Calamity Declared in Siargao and Bucas Grande Islands Due to Power Outage
BUTUAN CITY – On Tuesday, the Sangguniang Panlalawigan (SP) of Surigao del Norte passed a resolution declaring a state of calamity in Siargao and Bucas Grande Islands due to a prolonged power outage that began on December 1, caused by a fault in the submarine cable that supplies electricity from mainland Mindanao. Governor Robert Lyndon Barbers expressed his support for the declaration, stating that it would accelerate the release of emergency funds and provide crucial assistance to the affected towns and villages. “The declaration will empower local authorities to implement necessary measures to address the economic and social challenges brought about by the prolonged power outage,” Barbers said. The Provincial Disaster Risk Reduction Management Council had recommended the calamity declaration on December 5. The provincial government committed to prioritizing the welfare of residents and swiftly restoring normalcy. Janis Medina Reginio, a spokesperson for the Surigao del Norte provincial government, explained that the first action under the declaration is the provision of generator sets to all 134 barangays on the islands. “We are also working with the Department of Trade and Industry to enforce a price freeze on basic commodities to ease the burden on affected residents,” she added. Efforts to restore power are ongoing, with the Siargao Electric Cooperative (SIARELCO) reporting on Tuesday that teams were inspecting a 1.9-kilometer section of the submarine cable to identify the fault. Modular generator sets, including units from Lanao del Norte and Agusan del Norte Electric Cooperative, are being transported to Siargao to provide temporary electricity. A total capacity of 16 megawatts is expected to be available by December 20. The extended power outage has disrupted daily activities and strained resources, prompting urgent calls for action to alleviate the crisis.