More fuel price cuts possible next week—DOE
There may be another round of fuel price rollbacks next week, Energy officials said.
According to Department of Energy Undersecretary Alessandro Sales, despite the US blockade of the Strait of Hormuz, global oil prices have remained steady.
Market prices are based on the Mean of Platts Singapore, which provides a daily benchmark for prices of refined petroleum products. As of Wednesday, according to Sales, fuel prices in MOPS had gone down for the second day.
"Even with the pronouncement of [US President Donald] Trump that he stationed his warships at the opening of the Strait of Hormuz, apparently the market is not pricing that in," Sales said at an online press briefing.
"If this market reaction continues, potentially, magkakaroon tayo ng more stable prices or baka magkaroon pa ng rollback," he added.
This week, diesel, gasoline, and kerosene prices have dropped by at least P20.89, P4.43 and P8.50 per liter, respectively.
Energy Secretary Sharon Garin expressed caution, however, since the possible downward trend would require five days of steady market prices. The situation remains volatile because of the continued tensions in the Middle East.
"Tahimik ngayon, so bababa 'yung presyo... Kung anu'ng nangyayari doon reflects on the price," she said.
"Hopefully they don't do anything very drastic or violent. Kasi 'pag tinamaan 'yung isang barko doon, then the market also reacts. Umaakyat na 'yung presyo sa international market...Whatever happens in the international market is reflected on our prices the following week," Garin said.
"It's not like ayaw namin na bumaba [ang presyo]. But we just need the public to know how significant the war is in terms of the prices in the local market," she added.
As for coming deliveries of diesel, Sales said a second cargo delivery was completed on April 10. The third cargo is scheduled to come in by the end of this week, with the fourth arriving shortly after.
The fourth shipment will be delivered to a site in southern Philippines, "somewhere in Davao, para ma-spread out natin 'yung buffer stock natin ng diesel," Sales said.
Since the beginning of the Middle East war on Feb. 28, fuel supply in the Philippines has been uncertain largely due to the closure of the Strait of Hormuz by Iran, and now the supposed blockade by the US.
Although a two-week ceasefire was declared on April 8, it has crumbled amid Israel's continued bombing of Lebanon.
