Another double-digit drop seen for diesel prices
Another double-digit rollback for diesel, potentially dropping its prices to below P130 per liter, could greet motorists next week as the ceasefire in the Middle East continues to hold. If implemented, this would mark diesel’s second price cut for 2026.
The global oil market shrugged off renewed warnings from US President Donald Trump against Iran of a US naval blockade of the Strait of Hormuz, a vital waterway for energy trade.
This is evident as oil prices maintained their downtrend this week, which could reflect in local pump prices for the week of April 21 to April 28.
MOPS estimates
Based on the first four trading sessions in the Mean of Platts Singapore (MOPS), an industry source estimated Friday that diesel prices could decrease anew by P17 to P19 per liter.
Gasoline may also drop by P2 to P3 per liter.
The estimates could still change by Friday or at the end of this week’s trading session.
This week, fuel retailers implemented price rollbacks of as much as P23 per liter for diesel. Gasoline prices also dropped by P4.43 to P5.40 a liter.
MOPS is the basis for the pricing of refined petroleum products in Southeast Asia, which uses the daily average of all trading transactions between buyers and sellers. Foreign exchange rate averages were also factored in.
The source, who requested anonymity, said the industry continues to see the unwinding of war premiums on prices amid hopes for Middle East peace.
Energy Secretary Sharon Garin said earlier this week that the agency was closely monitoring developments in the region.
“Hopefully, they don’t do anything very drastic or very violent. For example, if one ship is hit, then the market also reacts. The price will increase in the international market,” Garin said.
“Whatever happens in the international market is reflected in our prices the following week. We need the public to know how significant the war is in terms of our price here in the local market,” the energy chief added.
Tighter oversight
The Department of Finance (DOF), meanwhile, has issued guidelines for the excise suspension on kerosene and liquefied petroleum gas (LPG), mandating strict monitoring by the country’s two revenue agencies and requiring oil firms to continue filing tax returns.
As recommended by the Bureau of Internal Revenue (BIR), Revenue Regulations No. 3-2026 officially suspended the levies on the two petroleum products on Friday, April 17, following the signing of Executive Order No. 114 on April 16.
The suspension will last for three months and will be subject to monthly review by the Development Budget Coordination Committee (DBCC).
According to the guidelines, the BIR and the Bureau of Customs (BOC) will impose tighter oversight of fuel supply flows.
The BIR is still required to produce Authorities to Release Imported Goods (ATRIGs) for imported petroleum products, as well as Official Registry Books (ORBs) for locally produced petroleum products.
Tax returns still required
The BOC, meanwhile, will submit customs entries filed in its Electronic-to-Mobile (E2M) system.
These documents and data will then be consolidated into a report on the declared value and volume of covered petroleum products, which will be submitted to Congress on a monthly basis.
“The DOF, through the BIR and the BOC, shall conduct an inventory of existing stocks of LPG and kerosene as of the effectivity of the EO. Revenue Officer On Premises (ROOPs) shall continue performing their duties of monitoring the activities of taxpayers in their establishments,” the guidelines read. —WITH A REPORT FROM NYAH GENELLE C. DE LEON
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