DEPARTMENT of Energy (DOE) officials are hopeful for the sustained drop in fuel prices as the initial peace deal between the United States and Iran are scheduled to be signed later this week.
Data released by the DOE on Monday, June 15, showed that for this week, diesel prices are set to decline between P3.71 per liter to P5.71 per liter and kerosene, between P0.50 per liter to P2.50 per liter; while gasoline prices are seen to either be slashed off P0.32 per liter or hiked by as much as P1.68 per liter.
In an advisory, Jetti Petroleum said it reduced diesel prices by P3.80 per liter but hike gasoline prices by P1.60 per liter, effective 2 p.m. on June 16.
Seaoil, in turn, said it rolled back diesel prices by P3.71 per liter and kerosene by P0.50 per liter, but hiked gasoline prices by P1.68 per liter effective 6 a.m. on Tuesday.
“We hope that this continues especially with the news from the progressing talks among the countries involved in the current Middle East war,” Energy Secretary Sharon Garin said in an online briefing Monday.
“Hopefully, they can conclude on their agreements and hope that we can see on Friday the process of the parties’ final decision,” she said.
During the same briefing, DOE Undersecretary Sandy Sales said fuel prices have gone down to around P80 per liter level, from over P120 per liter after the Middle East crisis hit.
He expressed hope for further cuts, but said this might take about six months to a year given the destruction in the various oil storage and production facilities in the Middle East.
He said the recent cut in fuel prices is a reflection of markets’ anticipation of the result of the US-Iran peace deal.
“In terms of eventually, hopefully within the week, the agreement is signed what will happen to our pump prices? There’s space for it to come down as well but it does not go down to pre-war level. Not immediately, probably. We need another six to 12 months. It’s really just an issue of restarting the supply that was disrupted by the war,” he added. (PNA)
