DOE: Fuel price rollbacks driven by global oil market, not government mandate

The Department of Energy (DOE) clarified that recent fuel price rollbacks are not government-imposed fixed adjustments but are based on international market movements, as global oil volatility continues to influence local pump prices.

In a DZRH interview, DOE Secretary Sharon Garin said the rollback figures being observed are derived from a structured computation anchored on global trading data rather than a discretionary government mandate.

“Hindi naman siya government mandated, it is a fair assessment,” Garin said. “Kina-calculate namin yan base in international numbers… sinigurado lang namin na lahat sumusunod sa international crisis.”

She said the DOE uses a standardized averaging method based on global oil trading activity.

According to Garin, prices are computed using a five-day moving average of international market closes, which can fluctuate daily depending on global developments.

“Kinuha ang averaging kung base on international trading kung ano ang closing everyday… five days,” she said. “Week on week ang calculation ng DOE.”

Garin also addressed public confusion over earlier projections that suggested smaller reductions, noting that the announced rollback—reportedly reaching up to ₱20 per liter in diesel in some computations—reflected actual market conditions.

“Okay naman. I think nakita ng mga tao na may P20 yung diesel kahapon hanggang next week yan,” she said, adding that earlier figures circulating online were not official DOE projections.

Market-driven adjustments

Fuel prices in the Philippines, like in many import-dependent economies, are heavily influenced by global crude oil movements.

Garin said the DOE’s approach is designed to reflect these fluctuations in real time, adding that market reactions can change rapidly within days depending on global developments.

“Day in and day out medyo iba-iba ang reaksyon ng market,” she said, citing how ceasefire talks, policy statements from world leaders, and supply expectations can all affect prices.

Supply stability assured

Despite volatility, the DOE assured the public that fuel supply remains stable. Garin said the country currently maintains around 50 days of oil supply, with additional procurement supported by the Philippine National Oil Company (PNOC).

“For me, it’s enough time to find replenishment,” she said, noting that the government continues to coordinate storage and supply logistics with private oil firms due to limited national storage capacity.