MANILA — Energy Secretary Sharon Garin stated on Wednesday that even if the continuing fighting in key oil-producing countries were to end today, the Philippines should not anticipate fuel prices returning to pre-war levels anytime soon.
Garin stated that worldwide factors, such as broken oil infrastructure and growing delivery costs, will keep pump prices high even though Iran has given the go-ahead for Manila-flagged ships and seafarers to safely cross the Strait of Hormuz.
Garin claims that the nation is still heavily reliant on imports from areas afflicted by violence.
Additionally, Garin reported a 25 percent decrease in gasoline demand, which contributed to the stabilization of local supply.
Since Israel and the United States began attacking Iran at the end of February, diesel prices have doubled.
Diesel prices in the National Capital Region varied between P48 to P65.39 per liter between February 24 and March 2, or the final week prior to the start of the Middle East conflict, according to statistics from the Department of Energy’s Oil Monitor website.
Diesel prices in the NCR ranged from P110 to P144.90 per liter as of April 6, the date of the DOE website’s most recent updated matrix of pump prices. In contrast, the cost of kerosene was between P149.89 and P168 per liter, while the cost of gasoline was between P82.20 and P114.90 per liter.
The nation has more than 50 days of oil supply, surpassing the standard industry threshold of 30 days, according to a recent assessment from the agency.
However, due to increased insurance and transportation expenses, as well as global premiums, prices will continue to rise, especially for diesel, even though supply is still enough.
In order to prevent overpricing, the government said it is keeping a careful eye on oil companies and mandating that they frequently report their inventories, incoming cargoes, and pricing components.
Authorities are looking into potential solutions, such as a diesel price restriction, but they have cautioned about possible negative effects.
Garin stated that rehabilitation will take long because of significant damage to oil facilities, even if geopolitical tensions subside.
