The Department of Energy (DOE) expects fuel prices to continue easing in the coming weeks as markets respond positively to reports that the United States and Iran are nearing an agreement that could reopen the Strait of Hormuz and restore disrupted oil shipments.

Speaking during a virtual press conference on Monday, Energy Secretary Sharon S. Garin said the development is welcome news for the Philippines, which remains heavily dependent on imported fuel.

“As a country that imports the majority of its oil, we are acutely sensitive to global energy prices. Every disruption in the Strait of Hormuz sends ripples through our fuel costs, our electricity rates, and ultimately the household budgets of every Filipino family,” Garin said.

The DOE also announced another round of fuel price rollbacks effective June 16.

Gasoline prices may either decrease by PHP 0.32 per liter or increase by as much as PHP 1.68 per liter depending on the fuel retailer and location. Diesel prices are expected to decline by PHP 3.71 to PHP 5.71 per liter, while kerosene prices may fall by PHP 0.50 to PHP 2.50 per liter.

Garin said the agency remains hopeful that ongoing negotiations in the Middle East will further stabilize global oil markets.

“We hope that this continues, especially with the news from the progressing talks among the countries involved in the current Middle East war,” she said.

DOE Undersecretary Alessandro Sales said the market has already begun pricing in expectations of a peace agreement, adding that fuel prices could continue their downward trend if negotiations are finalized.

“Actually, this thing has sort of been priced in already, but we do expect an immediate reaction from the market when the agreement is signed,” Sales said.

The DOE also assured the public that fuel inventories remain sufficient despite recent concerns over global supply disruptions.

As of June 12, the country had an estimated 46.37 days of total fuel supply based on average daily demand. Inventory levels stood at 44.98 days for gasoline, 43.06 days for diesel, 45 days for liquefied petroleum gas (LPG), and 73.83 days for jet fuel.

“We are still in a very healthy position,” Sales said.

While officials expressed optimism over the potential reopening of the Strait of Hormuz, Garin said the government would continue monitoring developments closely until a formal agreement is reached.

“We are grateful for the announcement of all the involved countries that there is a real intent to terminate whatever conflict they have,” she said. “This is a positive step forward.”

If Middle East tensions continue to ease and oil shipments through the Strait of Hormuz normalize, how quickly could Filipino consumers see the benefits reflected in fuel prices and other energy costs?

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