Energy Secretary Sharon Garin announced on July 6 permitted fuel price adjustments for the week of July 7 to 13, with diesel increasing P1.57 to P3.57 per liter, kerosene rising P1.70 to P3.70 per liter, and gasoline ranging from a decrease of P1.75 per liter to an increase of up to 25 centavos per liter. The latest movement follows renewed pressure on diesel and kerosene prices and comes after last week's fuel price increase, when pump prices went up by P1.60 to P1.90 per liter for gasoline, P0.80 to P0.85 per liter for diesel, and P1.20 to P1.22 per liter for kerosene. The Philippines is a net importer of petroleum products, making local pump prices vulnerable to global oil price swings, foreign exchange movements, regional refined fuel prices, and disruptions in international supply routes.
DOE Announces Fuel Price Adjustments for July 7 to 13
In a press conference on July 6, Energy Secretary Sharon Garin announced the following permitted price range adjustments for the week of July 7 to 13: gasoline – from a decrease of P1.75 per liter to an increase of up to 25 centavos per liter; diesel – increase of P1.57 to P3.57 per liter; kerosene – increase of P1.70 to P3.70 per liter.
Metro Manila Retail Prices and Fuel Inventory Levels
The DOE's price monitoring showed common retail prices in Metro Manila at P70.00 per liter for gasoline RON95, P69.00 per liter for gasoline RON91, P69.90 per liter for diesel, and P98.50 per liter for kerosene for the week of June 30 to July 6. The current fuel inventory is projected to last about 43.72 days for gasoline, 43.81 days for diesel, 177.50 days for kerosene, 84.93 days for jet fuel, 36.45 days for fuel oil, and 42.28 days for LPG, based on DOE data as of July 3.
Dubai Crude Falls to $65 per Barrel, MOPS Diesel Remains Elevated
DOE Undersecretary Alessandro Sales explained that Dubai crude has fallen below the $80 per barrel marker, with last week's average around $65 per barrel. However, local pump prices do not immediately move in step with Dubai crude because the Philippines imports much of its fuel as finished petroleum products, such as gasoline and diesel. Sales stated that pricing is based on the Mean of Platts Singapore (MOPS) index, which tracks the regional traded prices of finished fuels. MOPS diesel was at $92.37 per barrel in the week before February 28, when fighting involving Iran and US-Israeli forces began. Last Friday, MOPS diesel closed at $114.73 per barrel. Sales said diesel is still being sold $22 per barrel higher than before the war began, which is reflected in pump prices.
DOE Projects Price Normalization Within One to Two Months
Sales stated that due to the lag between the movement of crude oil prices and the eventual price of finished fuel products sold to motorists, fuel prices may begin to normalize within one to two months, assuming there are no further disruptions. Supply conditions in the Middle East have shown signs of improvement after weeks of volatility tied to the conflict involving Iran and US-Israeli forces. The Strait of Hormuz, the narrow waterway between Iran and Oman, remains a key risk to global fuel markets as one of the world's most important oil shipping routes.
Pre-Conflict Fuel Prices in Metro Manila
Local pump prices remain above levels seen before fighting involving Iran and US-Israeli forces erupted on February 28. In the last full week before the conflict, DOE data showed common retail prices in Metro Manila at P56 per liter for gasoline RON95, P54.70 per liter for gasoline RON91, P55 per liter for diesel, and P83.47 per liter for kerosene.
FAQ
Why do fuel prices remain high in the Philippines despite Dubai crude falling to pre-war levels?
DOE Undersecretary Alessandro Sales explained that the Philippines imports much of its fuel as finished petroleum products priced via the Mean of Platts Singapore (MOPS) index, not Dubai crude benchmarks. MOPS diesel closed at $114.73 per barrel last Friday, $22 per barrel higher than the $92.37 per barrel seen in the week before February 28, when fighting involving Iran and US-Israeli forces began. This premium in finished fuel prices is reflected in local pump prices.
When does the DOE expect fuel prices to normalize in the Philippines?
DOE Undersecretary Alessandro Sales stated that fuel prices may begin to normalize within one to two months, assuming there are no further disruptions. This timeline accounts for the lag between the movement of crude oil prices and the eventual price of finished fuel products sold to motorists.
What were fuel prices in Metro Manila before the Middle East conflict began?
In the last full week before fighting involving Iran and US-Israeli forces erupted on February 28, DOE data showed common retail prices in Metro Manila at P56 per liter for gasoline RON95, P54.70 per liter for gasoline RON91, P55 per liter for diesel, and P83.47 per liter for kerosene.
