Fuel Prices in Philippines May Roll Back by P8 Per Liter Next Week; LPG to Increase

The Philippines may see a rollback of up to P8 per liter in fuel prices next week, particularly for diesel, according to the Department of Energy (DOE). Rino Abad, director of the DOE-Oil Industry Management Bureau, stated on Tuesday that the significant drop in global oil prices over the past three trading days, with diesel prices falling by nearly $17, could lead to this price adjustment. Abad estimated that if the current trend continues until Friday, a rollback of approximately P8 per liter could be implemented by next Monday. This potential price decrease is attributed to Saudi Arabia's announcement that it will continue to supply 14 million barrels of crude oil, signaling a sustained commitment to its buyers. Previous fuel price hikes were largely driven by the conflict in the Red Sea and attacks by Houthi rebels on Saudi Arabia. In contrast, prices for Liquefied Petroleum Gas (LPG) are expected to increase. Abad explained that suppliers purchased LPG units when prices were high, and this cost will be passed on to consumers. Energy Secretary Sharon Garin noted that volatile market prices are a consequence of the ongoing conflict in the Middle East, which is unlikely to end soon given recent attacks. She also mentioned that predicting the flow of events remains difficult due to limited progress in peace talks. Despite these fluctuations, Garin assured the public that the country has sufficient fuel supplies to last for approximately 53 days, exceeding the DOE's policy requirement of 15 to 30 days. Reserves for diesel and gasoline are sufficient for 56 to 57 days, and for LPG, the supply can last for 36 days. Garin emphasized that this comfortable supply level provides ample time to secure replenishment for the country's consumption.