Almost P13/liter rollback for diesel; gasoline prices up

MANILA, Philippines, April 28 ------ Motorists will get more relief as diesel prices post another steep rollback of nearly P13 per liter.

Starting today, diesel and kerosene prices are set to decline by at least P12.94 and P15.71 per liter, respectively, the Department of Energy (DOE) announced. Gasoline prices, however, will increase by as much as P0.53 per liter.

The latest adjustment marks the third straight week of price cuts for diesel and kerosene after five consecutive rounds of sharp increases driven by global supply disruptions. It is also the third week since the government began enforcing a policy mandating minimum rollbacks and limiting price hikes. With the new adjustments, diesel prices in Metro Manila and other highly urbanized areas are expected to fall to as low as P75.93 per liter – a significant decrease from the peak of around P170 per liter at the height of the crisis.

As part of efforts to maintain fuel supply in the country as supply routes remain vulnerable, the United States has approved the Philippines’ request to extend its waiver allowing the importation of Russian oil and petroleum products. DOE Undersecretary Alessandro Sales told reporters yesterday that the renewed waiver, effective April 17 to May 16, has enabled the Philippines to maintain access to Russian oil amid ongoing global supply constraints.

The one-month extension replaces the previous 30-day waiver, which expired on April 11. Petron Corp., the country’s sole oil refiner, had previously procured 2.48 million barrels of Russian crude to bolster national inventory. The supply is expected to last until June. The government has also completed the delivery of diesel buffer stocks ordered by the Philippine National Oil Co. (PNOC), totaling about 1.12 million barrels or 178 million liters.

The reserves – delivered in four batches to storage facilities in La Union, Batangas, Subic, Zambales and Davao – are sufficient for five days and will be used only if supply declines. “As the Middle East conflict continues, our priority is to ensure that the Philippines remains prepared, adequately supplied and able to respond swiftly to developments that may affect fuel availability and market stability,” Energy Secretary Sharon Garin said.

Meanwhile, a shipment of 21,000 metric tons of LPG from the United States is expected to arrive between May 20 and May 31, depending on transit conditions at the Panama Canal. The additional supply could extend LPG reserves by 13 to 15 days, helping offset a recent dip in inventory levels.

As of April 24, total fuel stocks rose to 54 days from 52 days the previous week. Gasoline stocks stood at 53.91 days, diesel at 54.61 days, kerosene at 168.74 days, jet fuel at 70.83 days, fuel oil at 67.55 days and LPG at 38.44 days. “Deliveries from all countries are continuous. We consume 34 million liters of diesel per day, and our number of days of supply is not decreasing because we are continuously adding to it,” Garin said.

Source: philstar.com