Agency says pump prices could return to pre-war levels of around P50 to P60 per liter within six to 12 months following the US-Iran peace agreement
By Benjamin Cuaresma
MANILA — Motorists may get a welcome reprieve this week as diesel and kerosene prices are expected to decline significantly on Tuesday, June 16, while gasoline prices remain uncertain amid continuing volatility in the global oil market.
The Department of Energy (DOE) said diesel prices could decrease by as much as P5.71 per liter, while kerosene prices may drop by up to P2.50 per liter.
Gasoline prices, however, may either increase by P1.68 per liter or decrease by as much as P0.32 per liter depending on final market movements.
According to the DOE, the projected adjustments continue to reflect developments in the global oil supply chain following months of disruption caused by the conflict between the United States and Iran.
The anticipated rollback comes as Washington and Tehran reportedly reached a peace agreement that could bring an end to the nearly four-month conflict in West Asia, a development that has eased concerns over supply shortages and rising crude prices.
Energy Undersecretary Alessandro Sales said local fuel prices may eventually return to pre-war levels, when gasoline and diesel generally sold within the P50 to P60 per liter range before the outbreak of hostilities disrupted global oil markets.
Sales said consumers should not expect an immediate return to those prices, noting that oil production facilities, shipping routes, and distribution networks affected by the conflict would still need time to fully resume operations.
“It’s really just an issue of restarting the supply that was disrupted by the war. The return of supply is not instantaneous,” he said.
The DOE estimates that fuel prices could normalize within six to 12 months if the peace agreement holds and oil-producing countries are able to restore supply without further disruptions.
Meanwhile, the agency assured the public that the country maintains sufficient petroleum reserves despite recent market uncertainties.
As of June 12, the Philippines had an average oil inventory equivalent to 46.37 days of supply.
Available stocks include 44.98 days for gasoline, 43.06 days for diesel, and 139.12 days for kerosene. Supplies of jet fuel were estimated at 78.33 days, while fuel oil and liquefied petroleum gas (LPG) inventories stood at 45.50 days and 45 days, respectively.
The DOE said it continues to closely monitor developments in the international oil market and their potential impact on domestic fuel prices.
