DOE: Big diesel rollback likely on June 23 as global prices fall

MANILA, Philippines — Fuel prices are expected to drop sharply next week after global petroleum prices fell following a US-Iran agreement, but local pump prices are still likely to remain above pre-crisis levels, the Department of Energy said.

DOE-Oil Industry Management Bureau Director Rino Abad said Thursday, June 18, that only three trading days had passed for the week, but the decline in petroleum product prices had already been substantial.

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"We are expecting a large rollback next week," Abad said in Filipino in a PTV4 "Bagong Pilipinas Ngayon" interview.

The size of the decline makes it unlikely that the expected rollback will be reversed, he said.

"There have only been three trading days this week, but the per-barrel price of petroleum products has already dropped significantly," Abad said.

Diesel prices in the international market had fallen by almost $20 over three trading days, a movement Abad described as unexpected.

The forecasted rollback could bring local pump prices to around P70 to P80 per liter, he said. That would still be above the P50 to P60 range before the crisis, but closer to levels seen before supply concerns pushed prices higher.

"It is not yet back to the P50 to P60 before the crisis, but we are getting close," Abad said.

Abad said a continued rise in fuel prices now appeared less likely unless conditions deteriorate again.

If the US-Iran agreement holds through its 60-day compliance period, Abad said the country could move closer to restoring supply and price levels seen before the crisis.