Diesel prices in the Philippines are set to drop by P3.83 per liter, effective September 1. This announcement comes as oil companies respond to shifting market conditions.
Price Adjustments by Major Oil Players
Healthy supply due to improving crude availability continues to pressure diesel, but further downside is capped by the still-limited availability of Middle Eastern exports.
Leo P. Bellas, President, Jetti Petroleum, Inc.
- Seaoil Philippines, Inc. will cut diesel prices by P3.83 and gasoline by P0.32.
- Shell Pilipinas Corp. plans to reduce diesel prices by P3.80 and gasoline by P0.30.
While the drop in diesel prices is welcomed, it is tempered by the limited availability of Middle Eastern crude, which has historically influenced local fuel pricing. Jetti Petroleum's President noted that gasoline prices remain lower than the previous week.
As of August 21, the Department of Energy (DoE) reported that the fuel inventory is adequate for approximately 47.22 days of consumption, with daily demand estimated at 78.08 million liters. Diesel inventory alone is sufficient for 47.66 days.
Energy Secretary Sharon S. Garin has indicated that the government plans to retain diesel supplies obtained during the energy crisis while preparing to sell off remaining liquefied petroleum gas (LPG) reserves.
In contrast, LPG prices are expected to rise by P3 per kilogram due to increased shipping costs and a weakening peso. Arnel U. Ty, founder of the LPG Marketers’ Association, emphasized the lingering impact of previous crude price increases on shipping expenses.