MANILA (3rd UPDATE) — Oil prices are jumping in the middle of October. 

Companies announced the following price hikes effective Tuesday, October 15:

SHELL PILIPINAS, CALTEX, SEAOIL (effective 6 a.m.)
Gasoline - P2.65/liter increase
Kerosene - P2.60/liter increase
Diesel - P2.70/liter increase

CLEANFUEL (effective 4:01 p.m.)
Gasoline - P2.65/liter increase
Diesel - P2.70/liter increase

PETROGAZZ, JETTI PETROLEUM, PTT PHILIPPINES, UNIOIL (effective 6 a.m.)
Gasoline - P2.65/liter increase
Diesel - P2.70/liter increase

Department of Energy Assistant Director Rodela Romero said the main reason for the steep price hike is still the worsening tensions in the Middle East

The other reasons, are  the effects of hurricane Milton on fuel supplies in the US, as well as higher oil demand.

Since the start of the year, gasoline have already climbed by a net P9.05 per liter. Diesel also has a P6.75 per liter net increase.

Kerosene prices, on the other hand, fell by P2.75 per liter net.

BAYAN MUNA RALLY

Meanwhile, national democratic activist group Bayan Muna staged a protest demanding the removal of the 12 percent value-added tax (VAT) on fuel products.

The group said the additional tax further pushed fuel prices up, which leads to higher prices of commodities because of steeper transport costs.

As fuel prices rose, government's take also increases as the absolute value of 12 percent also bloats.

For example, if gasoline is at P55/liter, then the 12 percent VAT is just P5.89/liter. But once the product reaches P60/liter, the VAT becomes P6.43/liter—an increase in government revenue of more than P5/liter.

But the DOE said tax issues are tackled by the Department of Finance, though VAT collections certainly help government programs for the underprivileged.