Double-digit rollback on diesel prices now possible
Consumers, particularly jeepney drivers long suffering from ballooning diesel prices, can expect a slightly bigger rollback of up to nearly P11 per liter, fueled by the global market’s optimism over peace talks between the United States and Iran.
A potential double-digit price cut may happen next week, as the estimates from an industry source on Saturday showed an P8.80 to P10.80 rollback per liter for diesel.
The source’s projection was larger compared to his estimates of a decrease of P5.50 to P6.50 a liter on Friday.
The indication was based on the average full-week trading of the Mean of Platts Singapore, a key pricing benchmark for refined petroleum products. Forex exchange rate averages were also factored in.
The latest estimates could bring diesel prices in Metro Manila to fall to around P120 to P160 a liter. This is from diesel’s high of P170 per liter in the capital region, although transport group Piston claimed Friday that prices in areas in Baguio City and Bicol had already hit as much as P185 and P165 per liter, respectively.
Even with the looming decline, however, diesel prices remain far from the prewar levels, which ranged from P48 to P73.61 per liter in Metro Manila.
Forecast for gasoline prices, on the other hand, was almost unchanged, with a decrease of just P1.50 a liter.
Diesel products are used by buses, trucks, jeepneys, and fishing boats. Machines used in agriculture also rely on that fuel.
Gasoline, meanwhile, is used for private cars, motorcycles, tricycles and light utility vehicles.
Weekend talks
Asked for the driver of the anticipated drop in prices, the source told the Inquirer this was mainly influenced by the two-week ceasefire in the oil-producing region. The likelihood of an agreement in the upcoming peace talks was also lifting the market’s bullishness.
US and Iranian delegates are expected to hold peace talks this weekend, six weeks after the war broke out, with Pakistan acting as intermediary between the two nations. This came days after US President Donald Trump threatened to wipe out a “whole civilization” as attacks continued.
The war has resulted in skyrocketing global oil prices, as the bombings also destroyed some crucial power infrastructure in the region, while Iran shut down the Strait of Hormuz—a vital maritime route for energy trade.
Along with other countries, the Philippines secured Iran’s assurance of safe passage at the waterway. However, Association of International Shipping Lines president Patrick Ronas said on April 8 that a total of 130 container vessels remained stuck in the Strait of Hormuz.
The Department of Energy (DOE), as well as local oil companies, said they continue to boost supply, with the government allotting P20 billion to purchase 2 million barrels of diesel—good enough for 10 days of consumption. The additional supply will be sold to oil firms at cost.
Shipment from Malaysia
In a statement on Saturday, the DOE said it had received a new diesel shipment carrying 329,000 barrels or 52.311 million liters from Malaysia. This marks the second government-procured diesel shipment, from the first delivery of 142,000 barrels or 22.578 million liters from Japan last March 26.
“This latest shipment from Malaysia further strengthens our supply position at a time when external risks remain, and the situation in the Middle East continues to evolve,” said Energy Secretary Sharon Garin in a statement on Saturday.
“The government is taking deliberate and forward-looking steps to build up available supply, support essential sectors, and help ensure that the country remains prepared for possible disruptions in the global oil market,” she added.
The DOE vowed to sustain close coordination with concerned government entities and industry stakeholders to reinforce fuel availability, maintain orderly market conditions, and safeguard consumer welfare.
It also assured the public of continued monitoring of inventory levels, timely distribution of incoming fuel volumes, and government interventions to prevent supply bottlenecks that may affect transport, logistics, power generation, and other vital economic activities.
