The Department of Energy (DOE) said motorists can expect mixed fuel price adjustments from July 7 to 13, with gasoline prices possibly going down while diesel and kerosene prices are expected to increase.

In a press briefing on Monday, Energy Secretary Sharon Garin said gasoline prices may range from a rollback of PHP 1.75 per liter to an increase of PHP 0.25 per liter.

Meanwhile, diesel prices are expected to rise by PHP 1.57 to PHP 3.57 per liter, while kerosene prices may increase by PHP 1.70 to PHP 3.70 per liter.

Garin said price increases are still expected, despite the continued decline in Dubai crude oil prices. 

She noted that the average price of Dubai crude dropped below USD 80 per barrel last week, describing this development as a positive sign that the global oil market is stabilizing.

“Sana makaabot tayo at a certain point na maging pre-war na sana siya. Pero it will take time,” Garin said.

[We hope prices will eventually return to pre-war levels, but that will take time.]

DOE Undersecretary Alessandro Sales explained that while the average price of Dubai crude oil has dropped, it has not yet translated to lower pump prices because local fuel prices are based on the Mean of Platts Singapore (MOPS), which remain high for gasoline and diesel.

“But, hopefully, within one to three months, mag-i-stabilize na rin ang MOPS kasi mga 30% na ang delivery volume na lumalabas sa Strait of Hormuz ngayon,” he said.

[But hopefully, within one to three months, MOPS prices will also stabilize as about 30% of delivery volumes are now flowing through the Strait of Hormuz.]

Fuel inventory

The DOE also reported that the country’s fuel inventory improved to about 46.5 days, up from 41 days the previous week.

Gasoline and diesel stocks have both increased to nearly 44 days, while kerosene remains high at 177 days.

Jet fuel is at about 85 days, fuel oil over 36 days, and LPG at more than 42 days, all showing healthy supply levels.

Sales also announced that a PHP 163 rollback is expected for an 11-kilogram LPG tank this July. The estimated dealer pickup price may range from PHP 987 to PHP 1,437 per tank.

If stabilization is expected within 1 to 3 months, should policy responses be reactive to short-term fluctuations or proactive against long-term volatility?

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