Pre-war rates likely: Diesel, kerosene prices seen down on June 16

Fuel prices in the Philippines are poised for a rollback on Tuesday, June 16, with diesel and kerosene expected to see price decreases. The Department of Energy projects a reduction of P3.71 to P5.71 per liter for diesel and P0.50 to P2.50 per liter for kerosene. Gasoline prices, however, are uncertain, with potential increases of P1.68 per liter or decreases of P0.32 per liter.

These anticipated adjustments are primarily driven by shifts in the global oil supply chain, significantly impacted by the conflict between the United States and Iran. Energy Undersecretary Alessandro Sales suggested that Philippine fuel prices might revert to pre-war levels, estimated between P50 to P60 per liter, within six to 12 months, contingent on the success of a recently agreed-upon peace deal between the US and Iran.

Sales cautioned that even with a successful peace accord, pump prices would not immediately drop. He explained that the restoration of oil facilities and supply networks requires time to resume operations. "It's really just an issue of restarting the supply that was disrupted by the war. The return of supply is not instantaneous," he stated. As of June 12, the country's oil and fuel reserves were sufficient for an average of 46.37 days, with specific supplies for gasoline, diesel, and kerosene lasting 44.98, 43.06, and 139.12 days, respectively.

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It's really just an issue of restarting the supply that was disrupted by the war. The return of supply is not instantaneous.