Major rollback sends diesel back to P70 despite Hormuz fears

Motorists, transport operators, and businesses that rely heavily on fuel are set to get a major reprieve this week as diesel prices in some parts of the country return to the P70-per-liter level following one of the largest fuel price rollbacks in recent months.

The Department of Energy (DOE) reported on Monday that oil companies are set to implement diesel price cuts ranging from P9.04 to P11.04 per liter starting tomorrow morning, bringing the projected lower end of the Metro Manila's diesel retail price range to P60.25 per liter from P71.29 per liter last week.

Based on DOE price monitoring, diesel prices in Metro Manila should range from P60.25 to P80.45 per liter after the adjustment.

Diesel Plus products are likewise expected to decline, with prices projected to range from P67.56 to P82.86 per liter.

Gasoline users are also set to benefit from lower pump prices. Oil companies will implement gasoline price cuts ranging from P3.90 to P5.90 per liter, bringing the projected NCR retail price range to P65.60 to P86.13 per liter for RON91, P66.60 to P94.10 per liter for RON95, and P68.20 to P102.70 per liter for RON97.

Meanwhile, kerosene prices are set to decline by P9.82 to P11.82 per liter, with the projected retail price range settling between P92.58 and P118.68 per liter.

According to Energy Secretary Sharon S. Garin, the rollback should be strictly implemented throughout the week despite market concerns over reports that Iran's parliament approved the closure of the Strait of Hormuz. 

“There will still be a rollback despite reports about the situation in the Strait of Hormuz. Even if developments occur today or tomorrow, fuel prices should remain unchanged until next Monday.

Any adjustment based solely on those reports would not be justified. Fuel price adjustments should remain stable and follow the regular pricing schedule,” Garin told reporters. 

As of 19 June, the country maintains an estimated 43.86 days of total petroleum supply based on current inventory levels and average daily demand.

Gasoline stocks are sufficient for 43.75 days, while diesel inventories can cover about 40.42 days of demand.

Kerosene has the highest level of supply security among major petroleum products, with available stocks equivalent to 128.96 days of demand.

Jet fuel inventories are sufficient for 68.30 days, while LPG supply stands at 42.86 days. Fuel oil stocks, meanwhile, can cover 38.21 days of demand.