DOE: Bringing fuel prices to pre-war levels may take up to 12 months

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Prior to the Middle East crisis, diesel cost around P55 per liter, while gasoline and kerosene cost around P56 per liter and P83.47 per liter, respectively

MANILA, Philippines – The Department of Energy (DOE) welcomed a breakthrough in peace talks between the United States and Iran, but believes it is too early to deem the country’s energy emergency over.

Speaking to reporters in a press conference on Monday, June 15, DOE Secretary Sharon Garin said that officials will have to meet and assess whether the energy emergency declaration is still necessary since the issue has evolved to something much more than just an oil supply problem.

“It’s an inflation problem. It’s about the capacity of our people to spend and also its impact on agriculture and commodities,” she said.

According to Energy Undersecretary Alessandro Sales, it may take around 6 to 12 months for domestic fuel prices to return to pre-crisis levels since there is a need to restore the disrupted supply chains.

“Restoring disrupted supply is not instantaneous,” he said.

Sales also noted that around 90% of the country’s supply originates from the Middle East.

Prior to the Middle East crisis, diesel cost around P55 per liter, gasoline approximately P56 per liter, and kerosene was priced at around P83.47 per liter.

The DOE also announced rollbacks in diesel prices ranging from P3.71 per liter to P5.71 per liter, as well as a lowering of kerosene prices at P0.50 per liter to P2.50 per liter.

Meanwhile, oil companies have the option to roll back gasoline prices by a P0.32 per liter or raise it by up to P1.68 per liter.

The latest price adjustment is estimated to place diesel prices in Metro Manila at around P76.19 per liter to P78.19 per liter and kerosene prices at approximately P107 per liter to P105 per liter. Gasoline prices in Metro Manila could range between P78.78 per liter to P80.78 per liter.

Image from Department of Energy

Sales described the diesel and kerosene price cuts as a reflection of markets’ anticipation of the result of Washington and Tehran’s peace talks.

President Ferdinand Marcos Jr. declared a state of national energy emergency back in March after global oil prices spiked due to the ongoing crisis in the Middle East.

– Rappler.com