Shell Pilipinas Corp. will implement the largest fuel price rollback this week, cutting diesel prices by as much as P23 per liter starting tomorrow, as the Department of Energy (DOE) implements a “scientific” computations derived from bureau data and movements in the international oil market.
In a radio interview on Monday, Energy Secretary Sharon S. Garin said the DOE pricing mechanism relies on structured calculations by its bureau that tracked changes in the international oil market through the end of the trading week.
“(The computation was) very mathematical, very scientific, (because) the calculations of our bureau at the DOE,” Garin said, adding that the figures were based on the decline in international oil prices recorded up to Friday.
Government calculations showed that diesel prices are expected to decline by more than P20 per liter starting tomorrow morning, gasoline by P4.43 per liter, and kerosene by P8.50 per liter, reflecting earlier easing in global crude prices.
Shell will implement the highest rollback among oil companies, cutting gasoline prices by P6.50 per liter, kerosene by P11.50 per liter, and diesel by P23 per liter. As of press time, other fuel companies have yet to issue their respective advisories.
However, Garin assured that local oil companies will comply with the government-computed adjustments.
“Since yesterday up to today, they confirmed that they will do the rollback as prescribed,” she said, adding that figures represent the minimum expected adjustment among industry players.
Despite the temporary relief, she cautioned that fuel prices remain sensitive to external developments, citing ongoing geopolitical tensions that continue to affect global supply conditions and market sentiment.
“The market will react again… we will get the five-day average again for this week,” she said.
To cushion potential volatility in the coming weeks, the DOE said it will continue monitoring international oil movements and maintaining strategic stock levels.