MANILA, Philippines — Motorists can expect another significant drop in diesel prices next week, potentially bringing the cost below P130 per liter, as the ongoing ceasefire in the Middle East continues to stabilize global oil markets. This marks the second price reduction for diesel in 2026.
Despite renewed warnings from US President Donald Trump about a potential naval blockade of the Strait of Hormuz—a crucial passage for energy trade—oil prices have maintained a downward trend this week. This decline is expected to be reflected in local pump prices from April 21 to April 28.
Based on early trading data from the Mean of Platts Singapore (MOPS), industry sources estimate that diesel prices could decrease by P17 to P19 per liter, while gasoline may drop by P2 to P3 per liter. These figures could adjust by the end of the trading week.
"Hopefully, they don’t do anything very drastic or very violent. For example, if one ship is hit, then the market also reacts. The price will increase in the international market," said Energy Secretary Sharon Garin, emphasizing the sensitivity of local prices to global events.
This week, fuel retailers already implemented rollbacks of up to P23 per liter for diesel and P4.43 to P5.40 per liter for gasoline. The MOPS, which averages daily trading transactions in Southeast Asia and factors in foreign exchange rates, serves as the benchmark for refined petroleum product pricing in the region.
An anonymous industry source noted that the market is seeing a reduction in war premiums as hopes for peace in the Middle East grow. Meanwhile, the Department of Finance has issued guidelines for a three-month suspension of excise taxes on kerosene and liquefied petroleum gas (LPG), effective April 17. The suspension will be reviewed monthly and involves stricter monitoring by the Bureau of Internal Revenue and the Bureau of Customs to ensure compliance and accurate tax reporting.