DIESEL PRICES will fall by P3.01 per liter on Tuesday as measures to ease global supply shortages bring down costs, while gasoline and kerosene prices will increase by more than P1 per liter, the Department of Energy (DoE) said.
Gasoline prices will rise by P1.56 per liter and kerosene by P1.77 per liter starting Oct. 13, the agency said in an advisory on Monday.
The adjustment marks the third straight week of diesel price reductions and the second straight week of increases for gasoline and kerosene.
The changes will bring pump prices in Metro Manila and nearby areas to P107.46 per liter for gasoline, P100.16 for diesel plus and P146.34 for kerosene.
DoE Oil Industry Management Bureau Director Rino E. Abad said the diesel rollback reflects easing global supply pressures following measures to release petroleum reserves and temporarily relax restrictions on Russian diesel exports.
He said an agreement by the Group of Seven advanced economies to release 100 million barrels of petroleum products had helped calm the market.
A US-Russia agreement to temporarily ease restrictions on Russian diesel exports also helped ease supply concerns, he added.
“These developments will help ease the global diesel shortage,” Mr. Abad told a news briefing on Monday. “We have seen diesel prices continue to increase in recent weeks, highlighting the need to address the supply shortage.”
The Philippines remains vulnerable to global oil price movements because it depends heavily on imported fuel. The Middle East accounts for about 98% of its crude oil imports.
Despite volatility in international markets, the DoE said domestic fuel inventories remained sufficient to meet demand.
The country’s fuel inventory stood at the equivalent of 51 days of average consumption as of Oct. 9, based on daily demand of 73.61 million liters.
Gasoline stocks were sufficient for 53 days, while diesel inventories could cover 56 days of demand, DoE data showed.
Kerosene inventories were equivalent to 147 days of consumption, followed by jet fuel at 54 days, fuel oil at 46 days and liquefied petroleum gas (LPG) at 31 days.
Energy Undersecretary Alessandro O. Sales said the country continued to maintain adequate supplies of major petroleum products, including LPG. — Sheldeen Joy Talavera