A slight decrease in fuel prices is expected Tuesday, September 26, amid the fear of the local business sector that a continuous increase could weaken the purchasing power resulting in economic stagnation in the last quarter of 2023.
Fuel prices are expected to drop by P0.20 to P0.40 per liter for diesel and gasoline by P0.15 to P0.35 per liter on Tuesday, Unioil Petroleum Philippines, said.
Metro Bacolod Chamber of Commerce and Industry Chief Executive Officer Frank Carbon told DIGICAST NEGROS Sunday, September 24, that they fear it will be challenging -ber months for households and businesses as prices continue to increase, especially for fuel.
The current situation will hit hard especially those in the industries that use fuel, he said.
On September 18 the year-to-date net increase in the price of gasoline was P17.50/liter for gasoline, P13.60/liter for diesel, and P9.94/liter for kerosene, DOE said on its website.
Carbon said that MBCCI forecasts a continuous increase in fuel prices affecting all of the imported goods coming into the country.
“All imported goods will increase their prices due to higher logistics expenses that involve fuel. The demand is going up but the supply is not enough to suffice,” he said.
The MBCCI head claimed that the business sector in Negros Occidental is facing a triple whammy with the high fuel prices, possible wage increases, and increasing operating expenses.
With purchasing power weakening, people might only focus on expenses for food and transportation, which will result in lowering the demand for non-food and non-transportation items which will cause economic stagnation, Carbon said.
“This would be a very challenging last quarter for all of us and we might adopt interventions like cost-cutting and rotation of employees in our local business,” he said.
MBCCI is appealing to the government to address their concerns to help ease the impact of fuel price increases on the local economy.*