Yes, yes… I know that oil prices are high everywhere! Today, though, I just thought that I’d give you an update of where fuel prices stand in the Philippines. It seems that every week, the price of fuel goes up, and not just little by little.
It usually happens on weekends, the big oil companies here in the Philippines will announce price increases. It’s usually pretty uniform among the companies, they all raise by a half peso or one peso per liter. Lately it’s been a lot more than that though. Every week, the price might go up by two or three pesos now. Sometimes I’ll pass by the gas station one day, and when I passed by the next day I get real sticker shock when I see the price!
This morning, there are new prices on fuel. Let’s have a look and see where they stand here in the Philippines.
For this comparison, I’m using a conversion rate of 44 pesos per dollar. One gallon equals 3.785 liters.
Regular unleaded gasoline is now being sold at P 60 per liter. That works out to $5.16 per gallon. Based on news reports I’ve been seeing, I guess that we’re about $1 more per gallon than the United States.
For diesel fuel, the current price is P 51 per liter. That works out to $4.39 per gallon.
I’ve seen some discussion on various sites regarding diesel versus gasoline. In many countries, diesel costs more than gasoline. Here in the Philippines, gasoline is more than diesel. I believe part of the reason is, most of the public transportation like jeepneys and other such vehicles are using diesel. Because of this, it’s important to keep the price of diesel down, and the government does all it can to ensure that.
Over the past year or so, a lot of taxis and other vehicles have begun converting to using LPG, which is sort of like a propane or natural gas, which is liquefied. It seems like a good move, however, when I ride in an LPG taxi I always notice that it really has a lack of power. For instance, if it’s going up a hill, it can get pretty slow. Certainly with the prices of fuel in this level, we all need to be thinking about what other alternatives we have.
Last week, I was watching a TV show, and they were talking about fuel prices. Some oil company executives were saying that gasoline could be up to between 70 and 80 pesos per liter in the not too distant future. My goodness, that’s nearly $7 per gallon. I hope it doesn’t come, but I think it’s pretty likely.
How much are you paying for gas now? Leave a comment and tell me what the prices were you are.
Do you notice any difference? You see lesser cars now on the road or is it still the same?
I wonder how many can still afford. Fill your tank with 40 liters of gasoline is already 2400PHP.
Morning Bob,
Yeah its starting to bite everywhere. Regular fuel here starts at US1.56 per litre. Interesting your US Gallon is different from the Imperial one we used to use here in Australia before metrication (4.546 Litres). Diesel costs more here because our price works off Singapore prices apparently and diesel is more expensive on this basis. Years ago it was always a lot cheaper. I have been using LPG for 20 years (currently US65cents litre). It is Compressed propane (not natural gas). Technically, auto gas here is actually a mix of propane and butane (cig lighter gas). If you have a good system there is only minor power loss but you use 25% more fuel. The taxi dirvers I found in Davao would never use a low enough gear and the small cars were always laboring! I'm afraid only a worldwide recession (to slow demand in India and China) will cause fuel prices to drop dramatically. I think the 20c per litre difference between here and Davao for regular fuel is due solely to Aust Govt taxes. It can cost virtually $100 to fill a large tank from empty!
Hi Bob – $3.91 is the cheapest gas around here (Spokane, WA), the average is around $4.05 for regular unleaded. Diesel starts at $4.74. Sounds like diesel is the way to go there.
Hi Luc – From what I can tell so far it seems the amount of traffic is about the same, strange isn't it? I remember when I first moved to the Philippines gas was 14 pesos per liter! 😆 I wish that was still the case!
Hi AussieLee – yes, the Imperial gallon in the US gallon are different. The world sure is confusing, isn't it? 😆 In the US diesel was also more expensive than gasoline.
Hi Randy C – Yes indeed, economy wise diesel is the way to go. I have a diesel vehicle and a gasoline vehicle, I try to drive the diesel as much as possible. If I'm going I'll long trip, though, I take the gas vehicle, because it's nicer and more comfortable. More comfortable, that is except what I meant the fuel pump! 😆
arco costs 4.23 a gallon. Mobil is 4.39 Diesel is about a quzrter more a gallon(price for regular unleaded) S. oregon. In northern california it is 4.59 or more for a gallon of regular gas.
Hi don – Thanks for passing that along. So, you guys are a little bit cheaper than we are, but the way prices are moving up who knows next week?
I wonder if it'll ever go down again.
Hi Bob,
I just came back from the store and gas was $1.45 per litre. I live in a suburb of Vancouver.
News has it that the bigshots are all meeting with the Saudi's this week to try and get a rein on the skyrocketing prices. The Royal family is afraid that if gas goes much higher that people will rebel and use their cars much less and therefore their profits will tank. The news has oil at $135.00 per barrel.
By btw the ferry capsizing is all over CNN and on all the major networks about the typhoon and the flooding and landslides everywhere.
I hope that everything is OK with you and yours!!!!
Hi Tyleen – Yes, there are a lot of people suffering in the Philippines right now because of the weather. Fortunately for us, we're not included in the suffering. Davao is not in the typhoon belt, so we don't get that kind of weather here. I'm very thankful for that.
Yes, I've been seeing on the news about that meeting in Saudi Arabia, I hope they come up with some kind of solution!
maayongbuntag bob
here on this island off maine state usa the gasoline price is 6,15 a gallon and diesel is6,00 per gallon.i sure have been doing alot of walking,summer here now so its not to bad
salamat bob
my wife is in Leyte right now. She said it is nice now but the typhoon just went over them this last sat. I just taked to her befor 7 your time.
I told her if I see her eating lunch in Davao in picture on Bobs web sight I was going to cancel all the Credit cards. hahahah 😥
Here at the local gas stations in the San Francisco area it is about $4.80 a gallon for regular on average. diesel is always a bit more. 22 more days until I am there. Can't wait.!
I just watched ABC and they covered the meeting with the Saudi's.The Saudi's only agreed to increase the output by a small amount so the consenus is there is no quick fix and they will be meeting again in the fall.
In the short term that means no relief for us working stiffs.
My suggestion is buy locking gas caps to prevent gas can thieves, and walk or take alternative transportation.
Bob in my opinion gas prices will not come down in our future. If anything it will be insignificant in terms of what we used to pay. I am in my own way happy to see higher gas prices. It has always been my thought that alternative fuels, mass transit, etc will never get the attention they need until prices for oil are higher. I think its imperative though that the United Nations start to plan for higher food prices in developing countries. That is a tragedy that should not be allowed to happen. In the U.S. I am reading about people eating less beef due to the higher costs related to feed, etc…. There might even be a silver lining there for our expandiing waist lines. (mine especially) I have friends with houses that are 5000-7000 square feet and they are stressing about what to do. I think they made a mistake buying them in the first place-have never been an advocate of the mansion mentality around here. The adustments are going to be painful but as a society we will come out of it at some point. Live simple and intelligently. I apologize for writing all of this. Ron
Hi Ron W – Wow! Gas sure is expensive there, I guess because it's a remote location. I guess is good for us to get in shape and walk more.
Hi Don — glad to hear that everything turned out okay. If she comes to Davao for lunch, I'll be sure not to take a picture. 😆
hi Robert G. — I guess San Francisco's always expensive, isn't it? Glad to hear you're on your way to the Philippines!
Hi Tyleen – it's funny you say that, I just got home. I walked to the barber shop and had a haircut then walked home. Good exercise, no gas used! 😆
Hi Ron LaFleur – I agree that a lot of lifestyles will be changing due to the rising cost of energy and also food. Houses of the size that you mention are simply not needed by anybody. Yes, a lot of changes are in store. But it's also hard times for a lot of people. 😥
Hi Bob,
Well, I just filled up last week here in SC for $3.95 a gallon. Pretty nasty. So, yeah, it's about $1 more over there per gallon. Not that it matters, but it's getting crazy…think I start shopping for a bicycle 😉
Hi RichardInSC – hey, I think the bicycle is going to be the vehicle of the future! 😆
Hi Bob… The oil price fluctuation is fascinating to me. Last weekend, in Abu Dhabi (wher the prices are subsidized… Nothing to do with proximity of supply), gasoline was around $2.00 per US gallon, fixed by the government. The week before, in the States, around $4.30 a gallon in Florida. The same week, in the UK… Well, that was PAIN 😡 !
It is still my belief that oil prices, much like the recent food price increases, are manipulated… I think that the media plays a big role and perpetuates the public perception as much as any real shortages. For example, if there is a refinery fire and one refinery is shut down, simple supply and demand should show a change LATER, once the supply is actually impacted. But the markets are no longer functioning that way… They are anticipating these supply constraints rather than reacting to them. So the price goes up immediately. Now, the same speculators who fueled the dot-com boom, the housing boom (in the States) are fueling this bubble (Oil futures). They are the fund investors… Not even the big private investors have the economic muscle to influence the markets to the extent that these guys can. Add in investors who demand very short-term to immediate windfall gains, the new Chinese middle class, Uncle Georgie's Iraq adventure, Ahmedicantpronounceit's Tehran adventure, Chavez playing the bigshot, a few hundred Nigerian Princes who want my help in getting their money out of London banks, and Al Gore and his pseudoscience, and the pricing becomes self-perpetuating very quickly. The price will come down, eventually. This, like all bubbles, cannot continue indefinitely…It MUST return to sustainable levels. The real question is how long it can continue… In poop countries like the RP, there is simply not as much power as in the US, or China, or elsewhere to influence the global market… Unfortunately, this is far bigger than the government here can ever hope to influence. Even with price controls, the already bare coffers quickly become even more bare.
I meant poor countries, not "poop" countries… a very BAD typo. (and VERY unintentional.
Hi Bob,
Reg. gas here in Atlantic City, NJ is average at $3.93 per gl.My wife and I are lucky that we both only live 5mins from work. Where will it stop? Who knows! I look for it to top out at around $4.37 by the end of the summer here in NJ.
Bob
The reason the diesel is higher than gas here in the US is because of higher refining costs due to EPA restrictions. Also the main reason in my opinion for the increase in oil is due to the restrictions in drilling for the oil. If the US would open drilling for crude oil you would see prices drop quickly to the point that deep sea drilling is not profitable. The higher cost of fuel is one of the main reasons for the higher food prices. But the what makes me wonder the most is why gas and diesel was cheaper in the RP than the US in 2004 and now it is higher that the US???
Hi Bob
Even though diesel costs more in most countries, you do get around 25-30% more energy from diesel compare to gasoline. That is why Honda is planning clean diesel cars and many cars in Europe use clean diesel. Actually clean diesel is more cost effective then hybrids are. I heard from a taxi driver that LPG is not healthy to breathe in (really for the taxi drivers who have to breathe it in all day) not sure if that is true or not.
One reason why oil is so high is that there is very little spare capacity to produce more oil (only Saudi Arabia has the capacity). Mexico is producing 10% less oil this year and exporting 200k barrels less per day. If they dont allow foreign investments in drilling that in 10 years they will no longer be able to export more oil. North Sea has peaked. Russia and Venezuela have made it almost impossible to invest their. The only countries that can produce a lot more oil in the short term is Iraq and Saudi Arabia. Other countries can produce more in the long term is Canada, Brazil, and Kazachstan. I dont see oil going down from here and will only go up ,not sure by how much and how fast but as long as there is great demand for oil, which for the forseable future will be there mainly coming from China, India, and the Middle East where there is some degree of subsidies. Since these countries are growing richer (and China reduced subsidies last week) that even without the subsidies demand will grow and in China it will now be more profitable to refine and sell gas which could actually increase demand since there will not be long lines or shortages of gas.
Its a shame that we cant drill for oil in Alaska (ANWR) where there is probably a trillion dollars of recoverably oil at todays prices. Its also a shame that in the U.S. in the northeast they use heating oil in winter time or in China they use diesel for electricity production. What a waste of a limited fuel.
Good afternoon Bob,
No one has yet mentioned all the "grey nomads" in the west who live a permanent or near-permanent life on the road. The price I quoted above in post #2 for fuel you can increase by 50% or more for remote locations. These people who have limited budgets are having to dramatically curtail their distances travelled. I have an old coach I am going to soon convert to a mobile home. It is diesel, 40' long and 17 tonne! Needless to say I haven't been taking it out too often lately for test runs! 🙁
Hi John Miele – Gee, it gets really interesting to hear about the different prices around the world that you've witnessed. Government actions always have a lot to do with that kind of thing, taxes, subsidies, that kind of thing. And I believe you're right that oil prices have a lot to do with the food price surge that we've seen to. Thanks for sharing your thoughts John.
Hi Micki – Living that close to your work is really an advantage these days! You don't even need a car if you don't want one.
Hi Larry – Keep in mind Larry, that about two years ago, a value-added tax was added to gasoline here, so that put 12% extra on the price in one shot. Currency fluctuations also play into it.
Hi Neil — I saw on the news that Iraq recently awarded oil contracts to foreign companies, and I believe they're getting ready to really start pumping more oil there. Hopefully that'll help some. We'll see!
Hi AussieLee – Oh yes, in the states, those guys with the motorhomes like that are called snowbirds. Like you say, basically they just travel around in their motorhomes and see the country after their retirement. It kind of seems that that lifestyle will be a thing of the past soon, given the price of gasoline or diesel. 😀
Hi Bob, Boy, you sure generated a lot of comments with this blog! Shows what's on people's minds. Up here in Austria gasoline is going at Euro 1.34 (92.7 pesos) per litre and diesel is Euro 1.39 or 96 pesos per litre. We have always been high because of the taxes.
Hi John in Austria — Wow! Now those prices are sky high. Of course in Europe, the taxes on fuel are very high, so that's understandable. Seeing it in black and white is really a shocker though. Thanks for sharing that!
I hope this results in a "tipping point" where people finally use bicycles, create bicycle only lanes and parking areas. Is this possible do you think?
Hello khaye – A few years ago there was a lot of talk about making bike lanes and such in the Philippines. Since then, though, I have heard nothing about it. It doesn't appear to be on the horizon. 😥
It is about $4.33 per gallon in my area about 60 miles north of New York City for Regualr Unleaded and prices increase up to several times a week. My friends in the UK tell me the equivalent cost for " petrol " there is about $12 per Gallon. The entire world economy is being set back by the Oil Companies and investment speculators ! The rich get richer, the rest of us soon will have to walk or bicycle I guess. I would think the public transport tricycle operators there may experience a lot of new business !
You guys never had it so good 😆 Come to the UK,diesel £1-33 per litre, 😯
Hi Bob,In my area of the Uk.Unleaded gas @ P110 litre.Diesel @ P120 litre.In fact we have the most expensive fuel in the world because its so heavily taxed.Regards Chas.
Hi John Miele#24,I agree with you,futures traders are driving prices of oil and also food.I read recently the US govt was banning traders selling oil futures overseas(something like that,can't remember full details).In a recent BBC world news article, analysts stated they expect prices to increase further but fall back at the end of the year to @ $95 to $110 a barrel.( i wonder if that has anything to do with US elections,history tells me, in the first 6 month term of a new President the $ usually strengthens @ 20%).However, other analysts still predict $200 a barrel,its a case of wait and see,i'm afraid.Im sure of one thing,we will never see oil cheaper than $100 a barrel again.There are huge untapped resources,bigger than Saudi in Siberia,but the costs of drilling etc are huge,so that will never be a cheaper solution.If you add the Russian protectionism against foreign investment etc, its a long way off.Regards Chas.
Hi Bob, New York — I think you're right. It's like we're going to go back to the old days, walking, riding bicycles, etc.
Hi john.j. – stop bragging! Just because you guys have the highest price in the world doesn't mean you should be proud of it. 😆
hi Chas — between you and John, you guys are bragging about your high-priced petrol now! You turn the argument around on me! 😆
Hi Bob,
I just can't imagine why gas here in our country is much costly compared to the US, the fact that we have very low economy. My friends in the US often asked me about it and whoah.. they are all shocked.
Hi Anne – thanks for stopping by and leaving a comment. I appreciate it.
I think the prices can go back and forth. Sometimes, the US is higher sometimes the Philippines is higher. A lot depends on currency fluctuations, and also refinery capacity. Whatever the reason, I wish it was lower!
Bob,
Last saturday I needed to get gas. The provious evening I saw on tv a commnet that prices were not going up, but the next morning I saw they were up to 58.78 (not possitive on the centavos but close) I then noticed a Jetta station still at 57.17. I went in. It turned out they were not changing prices to the afternoon. So if you need to gas up and forgot to get it before Fri evening, keep your eyes open and maybe get a break.
Hi Bruce – I usually find Jetti to be about P1 lower than any of the other stations. They have a station very near my house, and I pass by there almost daily, so I do keep an eye on it. 😀
3.99 here Bob…Phil R.
Hi Phil R. – Ha ha.. they might as well make it $4! Of course, by tomorrow it will be!
😐 Hi Bob Here in Portland regular is about 4.25 per gallon..
All consumer goods are jumping like crazy due to the cost of transportation! When will this madness end? 😈
Hi Steven – Lately, I find myself getting depressed some days at the state that the World is in right now. I hope things get better soon, although I'm not expecting it. I'll keep my fingers crossed, though! 😆
I regularly pay $4.30 a gallon in Vancouver, Washington. Makes me sick. Opening up more drilling in the United States will NOT solve this problem. The oil companies already have 65 MILLION acres of known oil reserves in the U.S. and they will NOT drill there. Why do you think that is? Because they don't care how high oil gets…why should they? They are making world record profits each and every quarter. And by the way, we give these crooks BILLIONS in tax breaks!
But that is for another discussion. Hard to say which government is more crooked, the filipino government or the U.S..
Hi Todd – I am not sure or if you realize this, but I moved to the Philippines from Vancouver, Washington, so I guess were from the same area. I'm to choose not to comment about the comparison of the governments, being a guest in this country means that I sometimes had to hold my tongue. I hope you understand.
🙄
why is there oil price hike? why should oil prices be raised? is it because of the frequent typhoon this year or the recession in america?
Hi ems – It's nor really related to anything in the USA, nor in the Philippines. It's a worldwide market for oil, and it's a combination of many things that determine the price of oil. The US market would affect the oil price a ot more than anything in the Philippines, though, since the market is so much larger.
In the gasoline part it says “P 60” or “P 51” does the “P” stand for pesos?
Yes, P is Pesos.