Fuel prices unlikely to return to P60 per liter, DOE Sec. Garin says

The prices of fuel products in the country may no longer return to P60 per liter due to structural damage caused by the Middle East conflict, Department of Energy (DOE) Secretary Sharon Garin on Sunday said.

Speaking to Super Radyo dzBB, Garin said the conflict remains unpredictable, and repairs to oil-related facilities could take a long time, even with de-escalation.

“Kung two weeks lang 'yung giyera, bababa. But the structural damage has already been done. It will take a long time to fix the facilities. Bababa man, hindi kasing bilis nu'ng pag-akyat [ng presyo]. Baka hindi na tayo aabot ng tulad ng dati na P60 pesos per liter ang diesel dito,” Garin said.

(If the war lasts only two weeks, oil prices might come back down. But the structural damage has already been done. It will take a long time to fix the facilities. Even if prices go down, it won’t be as fast as the increase. We may no longer return to the previous level of P60 per liter for diesel.)

In early March, Iran's huge Pars gas field was hit in the first reported strikes on Iranian energy infrastructure in the Gulf during the US-Israeli war.

Pars is the Iranian sector of the world's largest natural gas deposit, which Iran shares with Qatar across the Gulf. Iran's Fars news agency reported that gas tanks and parts of a refinery had been hit, workers had been evacuated to a safe location and emergency crews were trying to put out a fire.

The attack was widely reported in Israeli media to have been carried out by Israel with the consent of the United States.

Disruptions to petroleum shipments through the Strait of Hormuz, which is considered one of the world’s most crucial oil export routes, also prompted fuel prices in the country to increase for weeks.

However, for the first time since the Middle East conflict began in late February, the cost of diesel is expected to decrease by as much as P10.80 per liter and gasoline by as much as P1.50 per liter this week.

The anticipated reductions in pump prices came amid the two-week ceasefire agreed upon by the United States and Iran.

Fuel subsidy

With the right implementation, Garin also said the fuel subsidy for jeepney drivers may last for at least three to four months.

“'Yung programang discount for jeep (fuel subsidy), inaasahan namin na basta tama ang pagkaka-implement at projection ng budget, at least a minimum of 3 to 4 months ang discount na maibibigay sa jeep,” Garin said.

(We expect that the discount program for jeepneys (fuel subsidy), if properly implemented and the budget projections are accurate, could provide at least three to four months of fuel discounts for jeepney drivers.)

President Ferdinand Marcos Jr. earlier announced a P10-per-liter fuel subsidy for public utility vehicles. It would be capped at 150 liters per week, adding that it would be implemented for three months and would begin in Metro Manila. —KG, GMA News