Yesterday, AutoIndustriya.com reported that motorists will have to endure another round of oil price hikes. Unlike the price hikes that happened over the last ten weeks, this one is by far the biggest.
Starting today, gasoline prices went up by PHP 7.10 per liter while diesel was hit with a massive PHP 13.15 increase across the board. The result? The price of diesel is now similar to (or more than) that of gasoline.
Hard to believe, but that is what we've been seeing across multiple gas stations in Metro Manila. Beginning with this Shell gas station along J.P. Rizal in Marikina, V-Power Diesel is now more expensive than V-Power Gasoline.
It's also a similar story at a Petron gas station near Evia Lifestyle Center in Las Pinas. At PHP 77.65 per liter, Turbo Diesel is now the most expensive at this particular Petron.
In some gas stations, however, gasoline is still (slightly) more expensive than diesel. Take this Shell station along Timog Avenue near Scout Tuason. At PHP 81.71 per liter, V-Power Diesel is just a few centavos away from the price of V-Power Racing which currently sells for PHP 82.00 per liter.
At a nearby Phoenix station that's also located along Timog Avenue, their diesel is selling at PHP 76.20 per liter – making their gasoline products cheaper. It's the same situation at a Seaoil station in Quezon City, EDSA.
With diesel now becoming more expensive than gasoline, what does the future hold for the automotive industry? Will we see a shift towards gas-powered cars over diesel-driven SUVs and pick-ups? And could this result in smaller, more fuel-efficient cars (or engines) dominating the market?
As the price of Brent crude oil continues to be unpredictable, this might not be the last time we experience a huge oil price hike.