MANILA, Philippines – Pump prices are headed lower on Tuesday, June 23, as oil firms implement one of the biggest fuel price rollbacks in recent weeks.

In a press conference on Monday, June 22, Energy Secretary Sharon Garin announced the following price cuts:

• Gasoline – rollback of P3.90 to P5.90 per liter
• Diesel – rollback of P9.04 to P11.04 per liter
• Kerosene – rollback of P9.82 to P11.82 per liter

Before the adjustment, the Department of Energy’s (DOE) latest price monitoring showed common retail prices in Metro Manila at P78.90 per liter for gasoline RON95, P79.80 per liter for gasoline RON91, P78.20 per liter for diesel, and P107.20 per liter for kerosene for the week of June 16 to 22.

The rollback comes after global oil prices eased on renewed optimism over efforts to end the Middle East conflict, which had raised fears of supply disruptions in one of the world’s most critical oil shipping regions.

“The adjustments today will reflect last week’s market. So, kung may mangyari man today, o bukas, hindi po dapat umiba ang preso from Tuesday tomorrow to Monday next week. So steady lang po ang presyo natin from Tuesday tomorrow up to Monday next week. Kaya pag may nakita po kayong nagpapalit sa sabihin dahil po sa report na mukhang magsasara nan naman [ang Strait of Hormuz], hindi po tama yan,” Garin said on Monday.

(The adjustments today will reflect last week’s market. So even if something happens today or tomorrow, prices should not change from Tuesday tomorrow until Monday next week. Our expectation is that prices should remain steady from Tuesday tomorrow up to Monday next week. So if you see anyone changing prices and saying it is because of reports that there may be another closure [of the Strait of Hormuz], that is not correct.)

The DOE also said that the country has a “healthy inventory” of fuel, with nearly 44 days of supply for gasoline and 40 days for diesel.

Prior to the official announcement, the DOE had estimated a rollback of P8 to P10 per liter for diesel, P4 to P5 per liter for gasoline, and P9 to P11 per liter for kerosene. Industry estimates had pointed to a possible decrease of as much as P11 per liter for diesel and P6 per liter for gasoline.

Despite the rollback, local pump prices remain above levels seen before fighting between Iran and US-Israeli forces erupted on February 28. In the last full week before the conflict, DOE data showed common retail prices in Metro Manila at P56 per liter for gasoline RON95, P54.70 per liter for gasoline RON91, P55 per liter for diesel, and P83.47 per liter for kerosene.

The DOE’s oil monitor as of June 16 showed that Dubai crude prices decreased by around $6 per barrel during the June 8 to 12 trading period. International prices of diesel and kerosene also fell by around $10 per barrel and $6 per barrel, respectively, while gasoline slipped by around $0.10 per barrel.

The DOE said crude prices declined week-on-week as renewed optimism over US-Iran negotiations eased concerns over potential supply disruptions. But it also warned that geopolitical uncertainty, tight supply, and declining inventories could still support higher prices if tensions escalate again.

Asian gasoline prices are expected to remain firm in the near term due to seasonal driving demand and expectations of limited Chinese refined product exports. Asian gasoil prices, meanwhile, softened as fresh July-loading supply from Taiwan and South Korea eased near-term supply concerns in the region.

The Philippines is a net importer of petroleum products, making domestic pump prices vulnerable to global oil price swings, foreign exchange movements, and disruptions in international supply routes. – Rappler.com