Pump prices may return to pre-war rates in 6-12 months with US-Iran peace deal
Oil prices in the country may revert to rates before the Middle East war now that the US and Iran have reached a peace deal, but it may take up to a year.
In a briefing on June 15, Energy Usec. Alessandro Sales emphasized the waiting time.
"We probably need another six to 12 months," he said. "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."
Global oil prices skyrocketed after the US and Israel launched coordinated attacks against Iran on Feb. 28. Iran retaliated by bombing American military bases in the Middle East and effectively shutting the narrow Strait of Hormuz, through which about a fifth of the world's oil supply passes.
Before the resulting oil crisis began, gasoline prices in Metro Manila ranged from P49 to P77 per liter; diesel prices per liter were at P48 to P74.
For now, Energy Sec. Sharon Garin announced oil price rollbacks effective Tuesday.
Gasoline prices may have a rollback ranging from P0.32 to P1.68 per liter, depending on the brand and pump location. For diesel, price cuts will range from P3.71 to P5.71 per liter; kerosene, P0.50 to P2.50 per liter.
Energy Usec. Sandy Sales assured the country is "still in a very healthy position" as far as local oil supply is concerned.
According to data shared by Sales, there is enough gasoline supply for almost 45 days; diesel, 43 days; kerosene, 139 days; jet fuel, 74 days; and fuel oil and LPG, 45 days.
On June 15, US and Iranian officials announced they had agreed on a peace framework for a deal to end the war in the Middle East. The deal will halt the US blockade of Iran and reopen the Strait of Hormuz. The reopening is essential to global oil price rollbacks, especially in the Philippines, which, according to the Department of Energy, imports 98% of its crude oil from the Middle East.
A day after the announcement, US president Donald Trump said the strait would be "completely open" by Friday, June 19. According to him, ships were again moving through the passage.
Garin welcomed the news, saying the Philippines is "acutely sensitive to global energy prices. Every disruption in the Strait of Hormuz sends ripples through our fuel cost, our electricity rates, and ultimately, the household budgets of every Filipino family."
