Diesel prices set to drop again as global supply increases

Diesel prices are expected to continue their decline as G7-member countries vow to release 100 million barrels of their petroleum reserves, a Department of Energy (DOE) official said Monday.

In an online briefing, DOE Director Rino Abad cited news reports saying the Group of Seven (G7) countries have agreed to release a part of their petroleum reserves in the next four months through the International Energy Agency to help increase global supply and cushion price hikes amidst the ongoing Middle East crisis.

Abad also noted United States President Donald Trump’s statement that the U.S. will not prohibit diesel exports from Russia, with the latter targeting to supply over 300,000 tons of diesel to the U.S. and global markets this month alone.

He said a major benefit of these agreements is that both the U.S. and the G7 countries vowed not to compete for these additional supplies to address their requirements.

“In summary, itong mga ganitong (these) developments will ease out the global diesel shortage,” he added.

Diesel prices have been declining for the third week in a row this week after big increases in the previous weeks.

In an advisory, Seaoil said it will slash diesel prices by PHP3.01 per liter, increase gasoline prices by PHP1.56 per liter, and raise kerosene by PHP1.77 per liter effective 6 a.m. on Tuesday.

Data released by the DOE during the day showed that a PHP3.01 per liter rollback for diesel this week, while gasoline prices will be increased PHP1.56 per liter and kerosene by PHP1.77 per liter.

Amidst hikes in some fuel products, domestic supply remains adequate.

DOE data showed that as of Oct. 9, total gasoline supply is adequate for 52.95 days; diesel, 56.30 days; kerosene, 146.99 days; jet fuel, 54.29 days; fuel oil, 45.77 days; and liquefied petroleum gas (LPG), 31.06 days.