Fuel price rolled back by as much as P23/L
Fuel price rollbacks by as much as P23 per liter take effect on Tuesday—a rare break from five weeks of surging hikes.
But also on Tuesday, global oil prices resumed their surge after the breakdown of peace talks between the United States and Iran over the weekend.
In an advisory on Monday, Shell Pilipinas said diesel prices would drop by P23 per liter on April 14. Its gasoline and kerosene prices were also lowered by P6.50 and P11.50 a liter, respectively.
Shell Pilipinas said it had the biggest price slash among local oil firms.
Jetti Petroleum reduced its diesel price by P2, while its gasoline price was unchanged. The company did not implement the P18.60 hike for diesel and P5.40 for gasoline that the firm was supposed to impose last week.
Unioil also rolled back its diesel and gasoline prices by P20.90 and P4.50, respectively.
Petron Corp. also reduced prices of its petroleum products by P20.89 per liter for diesel, P4.43 for gasoline and P8.50 for kerosene.
The downward adjustments were higher than projected over the weekend. According to a report by the Manila Bulletin, the Department of Energy (DOE) threatened oil firms with legal action if they failed to impose government-mandated price cuts.
Energy Secretary Sharon Garin shared the story on her Facebook page with a caption of a “peace sign.” But she did not reply when sought for more details.
The slash in pump prices came as the market welcomed the two-week ceasefire between the United States and Iran.
But peace talks failed over the weekend after a marathon discussion in Pakistan’s capital of Islamabad, and the rival nations appeared to be on the brink of resuming their costly war by late Monday after the US military prepared to carry out President Donald Trump’s order to set up a blockade at the Strait of Hormuz, the critical waterway controlled by Iran.
‘Maximum damage’
Brigitte Carmel Lim, senior vice president and COO of Cebu-based fuel firm Top Line, said the latest developments would “primarily impact global oil prices, as it is a critical supply route.”
“While the Philippines does not depend solely on this region, any disruption can still push prices higher worldwide,” she said when reached for comment.
Jetti Petroleum president Leo Bellas said that this could prompt Iran to launch fresh attacks on vital energy sites in the region.
“Further attacks by Iran on export facilities that bypass the Strait of Hormuz would inflict maximum damage to the already shaky crude oil markets, and may result in further increases in prices,” Bellas said.
