Manila: Consumers cannot expect sustained fuel price rollbacks in the coming weeks as global oil market volatility persists, the Department of Energy (DOE) said on Tuesday.
According to Philippines News Agency, in a Palace press briefing, Energy Secretary Sharon Garin stated that recent reductions in pump prices were driven by a temporary drop in global oil prices following the announcement of the United States' ceasefire with Iran. However, she warned that the trend might not continue due to the ongoing tensions in the Middle East.
Garin expressed uncertainty regarding future price reductions, citing the potential continuation of conflicts in the region. "So, will it continue to go down? There's no assurance for that, if they still continue the war. Then, if they stop the war today, I think the prices will still be on the high side for a few months pa rin (still)," she said.
Effective Tuesday, oil firms implemented rollbacks of PHP20.89 per liter for diesel, PHP4.43 per liter for gasoline, and PHP8.50 per liter for kerosene. Garin noted that US President Donald Trump's pronouncements have affected trading prices, with the recent ceasefire announcement causing a brief decline.
However, renewed tensions, including developments involving the Strait of Hormuz, have already pushed prices upward again, Garin observed. "So, we are really at the mercy of these countries. We are not even part of it," she remarked.
Despite the uncertainty, Garin assured the public of a stable fuel supply, with the country maintaining an average inventory of around 50 days. Current reserves include 36 days for LPG, 105 days for kerosene, 49 days for diesel, and 54 days for gasoline.
The DOE is working to secure additional supply and has coordinated with the Philippine National Oil Company and industry players. To mitigate the impact of high fuel prices, the government is implementing a PHP10 per liter fuel subsidy program, expected to last three to four months, depending on funding availability.
Garin acknowledged that while the subsidy might not fully offset price increases, it would provide relief to consumers. The government is also pursuing long-term solutions, such as expanding renewable energy use, rooftop solar installations, and net metering programs, to reduce dependence on imported fuel.
She emphasized that these efforts aim to decrease the country's vulnerability to global oil price shocks by reducing reliance on fossil fuels. The DOE is also exploring alternative crude supply sources while awaiting a possible extension of a waiver allowing oil imports from Russia. Garin mentioned the government's optimism about securing the extension and its consideration of other suppliers, including those in South America, as contingency measures.
