DOE bares P16.80 fuel price rollback

CEBU, Philippines — Motorists and commuters can expect significant relief as petroleum prices are set to drop by as much as P16.80 per liter starting Tuesday, November 10, following easing tensions in the Middle East.

Department of Energy (DOE) Secretary Sharon Garin, in a virtual press conference yesterday, announced a rollback of P16.80 per liter for gasoline, P4.10 for diesel, and P3.70 for kerosene for the November 10 to 16 pricing period.

Garin said the substantial reductions were driven by declining international oil prices amid growing expectations of a possible diplomatic resolution to the conflict involving the United States and Iran.

According to the DOE’s Oil Industry Management Bureau, ongoing mediation efforts by Qatar and recent political developments in the United States have strengthened market expectations of reduced military escalation.

These developments eased concerns over possible disruptions to oil supplies from the Middle East, particularly through the Strait of Hormuz, a major passageway for global petroleum shipments.

The easing of geopolitical tensions also helped reduce the risk premiums reflected in international oil prices, while expectations of more stable oil shipments improved market sentiment.

Garin welcomed the rollback, saying it would provide relief to Filipino motorists, public transport operators, and households.

“This substantial rollback is welcome relief for Filipino motorists, public transport operators, and households. The DOE is working to protect the interests of Filipino consumers by ensuring that reductions in international oil prices are reflected at the pump,” she said.

She added that the DOE would continue monitoring fuel price adjustments and coordinating with oil industry stakeholders to ensure consumers benefit from favorable developments in the global oil market.

Meanwhile, the DOE reported that the country had an estimated 50.33 days of total petroleum supply as of November 6.

Gasoline inventories were equivalent to 51.64 days of supply, while diesel stocks could cover 53.95 days of the country’s requirements.

The department said current inventory levels provide an adequate buffer to meet domestic fuel requirements despite uncertainties in the global oil market.

It also assured the public that it would continue coordinating with industry stakeholders to maintain sufficient petroleum stocks and ensure uninterrupted fuel distribution nationwide. — (FREEMAN)