DOE sees another fuel price rollback

MANILA, Philippines, April 16 ------ Motorists may see another round of fuel price cuts next week as global oil prices remain steady despite the United States’ blockade of the Strait of Hormuz, energy officials said.

Energy Undersecretary Alessandro Sales said prices in the Mean of Platts Singapore (MOPS), a key benchmark for refined petroleum products, have continued to ease over the past two days. “Even with the pronouncement of (US President Donald) Trump that he stationed his warships at the opening of the Strait of Hormuz, apparently the market is not pricing that in,” Sales told reporters.

If the market trend holds, he said Filipinos could see more stable fuel prices or even another rollback at domestic pumps next week. Amid an implied threat of legal action, oil firms complied with the government-calculated rollback this week, with diesel, gasoline and kerosene prices dropping by at least P20.89, P4.43 and P8.50 per liter, respectively.

Department of Energy (DOE) Secretary Sharon Garin said the ceasefire in the Middle East has helped calm prices in global markets. She expressed hope that no “very drastic or very violent” developments occur. “If one ship was hit, then the market also reacts. The price will increase in the international market. Whatever happens in the international market is reflected in our prices the following week. So that’s the danger,” Garin said. While energy officials did not disclose the two-day MOPS average, an industry source told The STAR that diesel prices could fall by P14 to P15 per liter next week, while the cost of gasoline may decline by P1.50 to P2.50 per liter.

The ceasefire has helped ease the risk premium on MOPS prices, although final adjustments will still depend on the three remaining trading days. Industry experts have warned that the rollback could be short-lived after Trump threatened to blockade “any and all ships trying to enter, or leave, the Strait of Hormuz.”

Domestic pump prices remain elevated amid ongoing disruptions in the critical maritime chokepoint, which typically carries around 20 percent of global oil and gas supplies. As of April 10, the Philippines had 50.31 days’ worth of fuel inventory, latest Department of Energy data showed.

Source: philstar.com