Fuel price rolled back but decrease may be short-lived

National

FUEL prices dropped sharply on Tuesday, April 14, after oil companies followed the government’s estimated rollback.

Several oil companies confirmed price cuts, with diesel reduced by at least ₱20.89 per liter, gasoline by ₱4.43, and kerosene by ₱8.50.

Shell announced one of the biggest rollbacks so far, lowering diesel by ₱23 per liter, gasoline by ₱6.50, and kerosene by ₱11.50.

The rollback followed earlier estimates announced by Ferdinand Marcos Jr., with Energy Sec. Sharon Garin saying oil firms were “on board” with the price adjustments, a report by Philstar said.

Reports said the Department of Energy (DOE) met with oil companies and warned that a show-cause order could be issued if firms failed to follow the government’s rollback estimates.

The suggested price cuts were much higher than earlier industry projections, which expected diesel prices to drop by only about ₱10.80 per liter and gasoline by ₱1.50.

Despite this, oil firms still complied, even though the Oil Deregulation Law generally prevents the government from controlling fuel prices.

Energy officials have yet to formally confirm the reported warning, though Garin reacted to social media posts about the issue with a peace sign emoji.

The recent price drop came after the United States temporarily paused attacks on Iran, leading to the reopening of the Strait of Hormuz — a key route that carries about 20% of the world’s oil and gas supply.

However, prices may rise again after US President Donald Trump warned he could block ships entering or leaving the strait.

Energy experts say any disruption in the area could quickly affect global oil prices, even for countries like the Philippines that do not rely entirely on that region.(Bhea Bianca S. Sadaya, CTU-TC BAEL-ELSD Intern)