Fuel price rollback: Up to P2.20/L cut expected early July
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A possible rollback of about P2 per liter in the first week of July is seen to partially offset the spike in fuel prices implemented last week, final industry estimates showed Saturday.
In an advisory, Jetti Petroleum president Leo Bellas said the per-liter price of diesel may be slashed by P1.90 to P2.10 beginning July 1. Gasoline may also see a price cut of P1.50 per liter to P1.70 per liter.
Rodela Romero, assistant director of the Department of Energy (DOE)-Oil Industry Management Bureau, also provided a forecast of a downward adjustment in pump prices. She said diesel prices may fall by P1.60 per liter to P2.10 per liter, while gasoline may decrease by P1 per liter to P1.40 per liter.
READ: Fuel price hike next week seen exceeding P5 per liter
Fuel prices seen easing as Middle East strife simmers
Kerosene may log the biggest reduction, ranging from P2 per liter to P2.20 per liter, according to Romero.
The potential easing of fuel prices can be attributed to the ceasefire in place between Iran and Israel, calming supply fears in the global market.
“Concerns over Middle East supply disruption eased following the ceasefire, with geopolitical risk premium on prices dropping sharply,” Bellas said in a message to reporters.
“The market’s focus returned to fundamentals with the de-escalation of the conflict, with prices recovering from the drop early this week on the back of higher demand,” he added.
To recall, the conflict in the Middle East intensified when Israel launched attacks against Iran’s nuclear and military facilities.
The United States contributed to the tension by targeting three of Iran’s nuclear sites.
As the Philippines relies heavily on imported fuel, the government earlier said it was ready to activate its fuel subsidy program intended for more than one million public-utility vehicle drivers and operators, tricycle drivers, as well as ride-hailing drivers.
The implementation, however, would only start once global oil prices exceed the $80 (P4,528.79) per barrel mark.
The DOE also heightened its on-site monitoring activities at retail fuel stations in Metro Manila to ensure fair prices are being implemented.
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