When will fuel prices return to pre-war levels?

National

‎CONSUMERS may need to wait another six months to one year before fuel prices return to levels seen before the recent conflict in the Middle East, according to the Department of Energy (DOE).

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‎DOE Oil Industry Management Bureau Director Rino Abad said that while the ceasefire between Iran and Israel has eased tensions in the region, the global oil market is still recovering from disruptions caused by the conflict.

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‎"We probably need another six to 12 months. It's really just an issue of restarting the supply that was disrupted by the war. The return of supply is not instantaneous, so that's the outlook," Abad said in a Philstar report.

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‎The official explained that although hostilities have subsided, oil-producing countries and suppliers still need time to restore production, rebuild inventories, and normalize distribution channels affected during the conflict.

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‎According to the DOE, fears of supply disruptions previously drove up global crude oil prices, which eventually translated into higher pump prices in the Philippines. The country imports most of its fuel requirements, making local prices highly sensitive to developments in the international market.

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‎Abad noted that market sentiment has improved following the ceasefire, reducing concerns over possible disruptions in major oil shipping routes in the Middle East.

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‎"The market is already seeing that there is a lower risk premium because the ceasefire is holding," he said, noting that the stabilization of geopolitical conditions has helped bring down global oil prices.

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‎The decline in international oil prices is expected to provide relief to local consumers. Oil companies have announced rollbacks in pump prices, with diesel and kerosene expected to register significant reductions.

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‎Despite these developments, the DOE emphasized that a full return to pre-war fuel prices will depend on how quickly global oil supply recovers and whether stability in the region is maintained.

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‎For now, authorities remain optimistic that continued peace efforts and the gradual restoration of oil production and distribution networks will help ease fuel costs in the months ahead.(Rojen Ann De la Cruz, PIT Communication Intern)