By Sheldeen Joy Talavera, A reporter
DRIVERS can expect another cycle of regression this week, as diesel and kerosene prices fell for the third consecutive week.
The Department of Energy (DoE) said the price of diesel must drop by at least P12.94 per liter, effective April 28.
“The estimated price of a diesel pump is from P75.93 to P101.96,” Energy Secretary Sharon S. Garin told reporters in a press conference.
The DoE official said that fuel retailers must reduce the price of kerosene by at least P15.71 per liter.
On the other hand, gasoline prices are expected to increase to P0.53 per liter.
“This is calculated based on certain calculation methods. It is not based on market behavior or expectations, but on what happened last week,” said Ms. Garin.
Unioil Petroleum Philippines, Inc. it said it would use government-mandated price adjustments.
Ms. Garin warned that oil companies are mandated to comply with the price adjustment restrictions set by the government. He mentioned that if the oil company does not follow the DoE advice, then charges will be filed.
An industry source previously said that markets remain driven by a number of events, with shipping disruptions and resulting disruptions in supply flows causing price volatility.
The US-Israel war against Iran, which began on Feb. 28, disrupted oil supplies worldwide and increased crude oil prices by nearly 50%.
RUSSIAN OILS
Meanwhile, the US gave the Philippines a one-month extension to allow it to buy oil from Russia, Energy Undersecretary Alessandro O. Sales said.
“There is a new waiver that will come into effect from April 17 to May 16… So, there is time to relax again,” said Mr. Sales at the same press conference.
Mr. Sales said the one-month extension applies not only to the Philippines, but also to other countries.
The Philippines had previously asked the US to extend the moratorium on buying Russian oil after it expired on April 11.
The Philippines is a major importer of crude oil and its main source is from the Middle East, the world’s largest oil-producing region.
Seeking to diversify its energy sources, the Philippines adopted Russia oil when the US temporarily lifts sanctions on imports for one month.
Last month, the country’s sole refiner, Petron, received 2.48 million barrels of Russian crude oil as an “extraordinary emergency measure” to secure additional supplies.
In order to increase the oil reserve, the government has moved to buy diesel barrels since March from different countries through the state-owned Philippine National Oil Co.
After the full delivery of four diesel cargoes, the Philippines has so far imported 1.12 million barrels.
“As the conflict in the Middle East continues, our priority is to ensure that the Philippines remains ready, adequately supplied, and able to respond quickly to developments that may affect fuel availability and market stability,” said Ms. Garin.
As of April 24, the Philippines’ fuel stockpiles could last 54 days, up from 52 days recorded last week.
The average inventory for gasoline is 53.91 days, while diesel has an average inventory of 54.61 days. Kerosene has an average shelf life of 168.74 days, 70.83 days for jet fuel, 67.55 days for kerosene, and 38.44 days for liquefied petroleum gas.
“The number of days has not decreased because the supply is continuous, as we use 34 million liters of diesel every day,” said Ms. Garin in Filipino.
