Diesel Price Rollback of Up to P8 Expected by End-September

MANILA, Philippines — The Department of Energy (DOE) anticipates a rollback of up to P8 per liter for diesel prices by the end of September, following three consecutive weeks of steep price hikes. Kerosene is also expected to see a decrease of P6 per liter, while the certainty of a P0.90 per liter cut on gasoline remains pending. Rino Abad, Director of DOE’s Oil Industry Management Bureau, stated that these estimated price adjustments are based on the movements of global oil prices in the first four trading days of the month. "Chances of having a rollback on diesel and kerosene remain high. On gasoline, we’re not yet sure. Let us wait for the Friday trading," Abad said in an interview with dzMM. In a separate interview with dzBB on Friday, Abad elaborated that the potential decrease on local pump prices is brought by the easing movement in the global market as Saudi Arabia announced partial resumption of their oil export operations. "This week, announced by Saudi, na makakabalik na ‘yung 40% ng kanilang resumption of the export,” Abad said. “Kumalma ‘yung market dahil nabalik ulit ang export galing ng Persian Gulf. At alam naman natin na ang kliyente ng Saudi is Asia Pacific.” In the last three weeks, local oil and fuel prices went up after the escalation of tensions in the Red Sea, and the reported damages on Saudi Arabia’s 1,200-kilometer pipeline that led to its temporary shutdown. The damage affected the transport of crude oil in Yanbu on the Red Sea, which gives Saudi Arabia an alternative route to export oil without going through the Strait of Hormuz. Without this route, Saudi Arabia has fewer options to send crude to the international markets. The Hormuz Strait remains heavily affected by the ongoing conflict between the United States-Israel and Iran. The Philippines, meanwhile, bears the impact of tensions as it imports 98% of its oil supply from the Middle East. This week, the transport sector has renewed its calls for implementing a fare increase, but the government says it is considered a ‘last resort’ to avoid passing on the burden to commuters. The Department of Finance, meanwhile, has signed a resolution recommending the excise tax relief on liquefied petroleum gas and kerosene, but left out diesel and gasoline over concerns of losing P12 billion per month in government revenues. The excise tax suspension is yet to reach President Ferdinand Marcos Jr., who can either approve or disapprove the recommendation.