Photo courtesy of Joan Bondoc- Philippine News Agency (PNA).
Consumers, mostly public utility drivers, get some reprieve from ballooning diesel prices as a slightly bigger rollback of up to nearly ₱11 per liter is expected the coming week.
The welcome news is fueled by the global market’s optimism over the ceasefire in hostilities and a positive outcome in the upcoming peace talks between the United States and Iran
The potential double-digit price cut may happen as an industry source calculated an ₱8.80 to ₱10.80 rollback per liter for diesel. The source’s projection was larger compared to estimates of a decrease of ₱5.50 to ₱6.50 a liter on Friday.
Accordingly, 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 is hoped to bring down diesel prices in Metro Manila, falling to around ₱120 to ₱160 a liter. This is from diesel’s high of ₱170 per liter in the national capital region (NCR) and the ₱185 and ₱165 per liter cost recorded in Baguio City and Bicol, respectively.
Despite the positive expectations, transport group Pagkakaisa ng mga Samahan ng Tsuper at Opereytor Nationwide (Piston) noted that even with the looming price decrease, diesel prices remain far from the prewar levels, which ranged from ₱48 to ₱73.61 per liter in Metro Manila.
On the other hand, forecast for gasoline prices are expected to almost remain unchanged with a minimal decrease of just ₱1.50 a liter.
Asked for the driver of the anticipated drop in prices, Industry sources cited that this was mainly influenced by the two-week ceasefire and the likelihood of an agreement between opposing sides which apparently is lifting the global oil market’s bullish stance
US and Iranian delegates are expected to hold peace talks, 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 ‘eradicate’ Iran from the world map.
In the meantime, the Department of Energy (DoE), as well as local oil companies, enthused that efforts are being made to boost petroleum supply with the government allotting ₱20 billion to purchase two million barrels of diesel—good enough for 10 days of consumption—which will be sold to oil firms at cost.
Just recently, the DoE received a new diesel shipment carrying 329,000 barrels or 52.311 million liters from Malaysia, marking the second government-procured diesel shipment, from the first delivery of 142,000 barrels or 22.578 million liters from Japan last March 26.
Energy secretary Sharon Garin cited that “th(e) latest shipment from Malaysia further strengthens (the country’s) supply position at a time when external risks remain and the situation in the Middle East continues to evolve.”
“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 noted.
In ending, Garin asserted the Marcos Jr. administration’s commitment to sustain close coordination with concerned government entities and industry stakeholders to reinforce fuel availability, maintain orderly market conditions and safeguard consumer welfare.
“We assure the public that we continue to closely monitor the inventory levels, timely distribution of incoming fuel volumes and government interventions to prevent supply bottlenecks which may affect transport, logistics, power generation and other vital economic activities,” she concluded.