Fuel prices in the Philippines have seen a downward trend this week, with diesel and kerosene prices dropping significantly. Starting May 12, diesel prices fell by at least P9.57 per liter, while kerosene prices decreased by P13.30.
According to the Department of Energy (DOE), consumers in Metro Manila will pay between P71.19 to P93.83 per liter for diesel, and P111.70 to P136.70 for kerosene. In contrast, gasoline prices experienced a slight increase of up to 47 centavos per liter.
Energy Secretary Sharon Garin reassured the public that the country's fuel inventory remains healthy, sufficient for 50.7 days as of May 8. She encouraged energy-saving habits among consumers, emphasizing that even small reductions in usage can contribute to energy resilience.
Geopolitical Concerns Impacting Oil Prices
Despite the local price drops, regional oil prices have surged due to ongoing geopolitical tensions, particularly related to the conflict in Iran. Recent statements from U.S. President Donald Trump rejecting Iran's peace proposals have raised concerns about further violence and potential disruptions in oil supply.
President Trump’s swift rejection of these counterdemands underscores the wide gulf between both sides, pointing to a risk of prolonged uncertainty rather than rapid de-escalation.
Lloyd Chan, MUFG
Analysts warn that this situation suggests a continuing geopolitical risk premium in oil markets, which could affect prices moving forward.
Current Market Reactions
As the market reacts to these developments, Asian stock indices showed mixed results. The Nikkei index fell by 0.4 percent while the Kopsi in Seoul rose by 4 percent, driven by gains in the tech sector.
In the coming days, discussions among world leaders, including a high-stakes summit between Trump and Chinese President Xi Jinping, may further influence market sentiments.