Over P8 diesel cut set

MANILA, Philippines — Motorists could be in for another round of relief as the reopening of the Strait of Hormuz under a peace deal is expected to drive diesel prices down by over P8 per liter.

An industry source told The STAR yesterday that diesel prices may decline by P6.50 to P8.50 per liter next week, while the cost of gasoline could drop by P2.50 to P4.50 per liter.

The estimates were based on the first two trading days on the Mean of Platts Singapore, the benchmark used to price refined petroleum products across Asia-Pacific markets.

Fuel prices may also continue to ease as the official signing of the peace agreement in Switzerland draws closer.

Once the deal is formally sealed, motorists could enjoy even bigger fuel price cuts once a full week of trading is factored into domestic pump prices.

Energy Secretary Sharon Garin welcomed the positive developments in the Middle East but noted that the government is “watching closely and cautiously with optimism.”

“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 at a press briefing on Monday.

This week, oil companies rolled back prices of diesel by P3.71 to P5.71 per liter and kerosene by P0.50 to P2.50 per liter.

Gasoline prices, meanwhile, dropped by P0.32 per liter, though some fuel stations recorded increases of as much as P1.68 per liter.