MANILA, Philippines — After weeks of relentless price hikes that pushed diesel to a staggering ₱170 per liter, Filipino motorists may finally see a rare reprieve at the pumps.
Following a temporary truce between the United States and Iran, energy industry sources indicate that a significant rollback is on the horizon for next week.
Based on the average of the first three trading days of the Mean of Platts Singapore (MOPS), the initial estimates for next week’s adjustments are as follows:
- Diesel: A potential drop of ₱2.50 to ₱3.50 per liter.
- Gasoline: Prices may remain unchanged or see a modest decrease of up to ₱1.00 per liter.
The sudden shift in market sentiment is largely attributed to a two-week ceasefire announcement and the brief reopening of the Strait of Hormuz.
- Market Relief: Global crude futures plunged on Wednesday following the diplomatic breakthrough, providing the first downward pressure on local prices since the conflict began on February 28.
- Choppy Recovery: Despite the projected rollback, experts warn that the market remains volatile. “Modest rebounds are seen based on today’s projections,” cautioned an industry source, noting that there are still two remaining trading sessions that could alter the final figures.
While the rollback is welcomed, analysts note that it only makes a “dent” in the record-high costs that have accumulated over five weeks of double-digit hikes.
- Diesel Inflation: Local diesel prices have soared by nearly ₱100 per liter in total since the start of the year.
- Cumulative Hikes: Between April 7 and April 13, retailers imposed hikes ranging from ₱17.95 to ₱19.80 per liter, making the upcoming rollback a relatively small recovery of lost ground.
Fuel retailers typically finalize and announce their price adjustments every Monday, with the new rates taking effect at 6:00 AM on Tuesday. Government officials continue to monitor the situation closely to ensure that the global price drops are reflected transparently at local pumps.