Diesel prices in Metro Manila are projected to decline next week, with estimates suggesting a drop of P7 to P9 per liter. This change is attributed to recent developments in Middle East peace negotiations and fluctuations in the global oil market.
Industry insiders indicate that starting May 12, diesel prices could range from P70 to P90 per liter, while gasoline might increase by P1 to P3 per liter.
Department of Energy Insights
The Department of Energy (DOE) has also highlighted a potential P9 decrease for diesel and a P12 drop for kerosene. Gasoline prices are expected to rise modestly by about P1.60 to P1.70 per liter.
If the anticipated rollback occurs, regular diesel will cost between P70.62 and P93.16 per liter. Premium diesel will drop to between P75.76 and P98.48 per liter.
Oil companies are set to announce their official price adjustments on Monday. Following the declaration of a national state of energy emergency, the DOE can now regulate price increases and enforce minimum rollbacks.
Market Context and Future Projections
Rino Abad, director of the DOE's Oil Industry Management Bureau, noted that recent price changes reflect a return to market-based pricing, which had been disrupted by the ongoing conflict in the Middle East.
We are feeling the significant drop in diesel prices.
Rino Abad, DOE
After a series of price hikes that saw diesel prices soar to as high as P170 per liter, retailers implemented a series of rollbacks, including a rare double-digit reduction of P21 per liter on April 14.
Despite the recent increases on May 5, where diesel prices rose by P2.66, the market anticipates further adjustments.
Diesel fuels various modes of transportation including buses, trucks, and fishing boats, while gasoline is primarily used for private vehicles and motorcycles.