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Diesel price spike adds pressure to Philippines’ electric jeepney shift

Diesel rose to 76 pesos per litre this week, up from 72 pesos a week earlier, while diesel had reached 114 pesos per litre in Metro Manila in March.

Reported · Written up by our desk · Emerging Markets

The Philippines’ ongoing shift toward electric jeepneys faces fresh strain as diesel prices climb again, forcing thousands of small operators and drivers to weigh volatile fuel costs against the debt required to switch to e-jeepneys, according to SCMP Economy.

Diesel prices spiked by nearly 5 pesos this week, with Metro Manila fuel costs hitting a high of 114 pesos per litre in March. SCMP Economy also noted diesel is well above pre-conflict levels, citing 60 pesos per litre before the Iran conflict began in late February.

The outlet said fuel pressures have contributed to an exodus of jeepney drivers from the road since the conflict started, and that inflation settled at 6.4% in June. Diesel rose to 76 pesos per litre this week from 72 pesos a week ago, according to SCMP Economy.

Liberty de Luna of the Alliance of Concerned Transport Organisations warned that further diesel increases could severely disrupt the sector, arguing that the situation could worsen even if officials cite limited stockpiles.

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