Strait of Hormuz safe passage won't immediately bring down fuel prices—DOE
Department of Energy Sec. Sharon Garin clarified that while Iran has allowed safe passage of Philippine ships through the Strait of Hormuz, this won't immediately bring down fuel prices.
"This is not a perfect solution, and it does not eliminate all risks. But it is an important step that improves our position in a highly uncertain global environment," she said in a statement on April 4.
Garin added that the assurance from Iran means reducing the risk of disruption to the Philippines' oil supply and improving safety considerations for Filipino seafarers.
On April 2, Department of Foreign Affairs Sec. Ma. Theresa Lazaro said that the Iranian Foreign Minister assured safe, unhindered, and expeditious passage through the Strait of Hormuz of Philippine-flagged vessels, energy sources, and all Pinoy seafarers.
"This development will not immediately bring down fuel prices, nor does it resolve our long-term structural challenges in energy. Those remain priorities that we continue to address," Garin said.
"But what this does is help ensure continuity of supply and stability, especially at a time when further disruptions could significantly affect our economy and our people."
The Philippines imports almost all of its crude from the Middle East, with Saudi Arabia its biggest supplier, making it vulnerable to oil price shocks and supply disruptions.
An industry source told The Philippine STAR that fuel prices could hike P17 to P19 per liter for diesel and P3 to P5 for gasoline on April 7. This reflects four days of trading in the Mean of Platts Singapore.
As of March 27, the country's fuel inventory was at an average of 50.94 days.