DOE: Diesel prices to drop over P20 per liter

National

THE Department of Energy (DOE) announced a significant rollback in fuel prices this week, with diesel expected to drop by at least P20.89 per liter, according to Energy Secretary Sharon Garin.

Gasoline and kerosene prices are also projected to decrease by no less than P4.43 and P8.50 per liter, respectively.

The figures released by Garin are notably higher than earlier industry estimates, which projected a maximum rollback of only P10.80 per liter for diesel and P1.50 per liter for gasoline.

The expected price drop follows the fragile ceasefire in the Middle East, which could reopen the Strait of Hormuz—a key global oil route that carries about 20 percent of the world’s oil and gas supply.

Despite ongoing tensions, including failed negotiations between the United States and Iran in Pakistan, Garin emphasized that the projected adjustments represent the minimum expected rollback.

“It’s based on the average of the last five days of international prices and comparing that to the average of the previous week,” Garin explained in a Facebook post.

Fuel prices had surged dramatically since the Middle East conflict began in late February, with diesel increasing by at least P100 per liter, while gasoline and kerosene posted net increases of over P50 and P80 per liter, respectively.

In Metro Manila, kerosene and premium diesel prices have reached as high as P170 per liter, while gasoline prices have neared the P120-per-liter mark, a report by Philstar said.

Garin earlier warned that high fuel prices may persist even after the war ends due to damage to key energy infrastructure in the region.

Meanwhile, public utility jeepneys in Metro Manila can avail of a P10-per-liter fuel discount in 52 gas stations accredited by the DOE as part of the government’s subsidy program.

“The system needs to be tested if it will work,” Garin said in an interview with dzBB. “We will be testing for a week here in Metro Manila. After that, we will roll out to public utility vehicles, meaning buses, jeeps and transport network vehicle services.”

The subsidy, announced by President Ferdinand Marcos Jr., will run for three months. Drivers may save up to P1,500 weekly, with a cap of 150 liters—the estimated average weekly consumption of jeepney drivers.

“We need to control it because, other than the budget of the government, we also have what we call safety nets. Some might take advantage of the situation and sell gas to others; that’s why we need 150 liters, depending on what jeepneys are consuming,” Garin added.(Samantha Faye Alcoma, CTU-TC BAEL-ELSD Intern)