Motorists are set for the largest relief at the pump this year as breakthrough in Middle Eastern peace talks and the reopening of the Strait of Hormuz, a vital shipping lane, send global oil prices tumbling.

Local diesel prices are projected to plunge by as much as ₱26.50 per liter, while gasoline costs could drop by up to ₱3.50 per liter.

The adjustments, expected to take effect Tuesday, April 21, following Monday’s formal announcements, track the sharp decline in the Mean of Platts Singapore (MOPS)—the primary regional benchmark for refined petroleum products.

Sentiment improved after Tehran signaled de-escalation in the maritime standoff that had paralyzed regional trade. Iranian officials announced the reopening of the Strait of Hormuz, a primary artery for global energy transit that accounts for roughly 20 percent of the world’s daily oil and liquefied natural gas supply.

The resumption of commercial traffic through the waterway has provided immediate relief to Asian markets, which are heavily dependent on Middle Eastern crude.

In the Philippines, the Department of Energy (DOE) is moving to ensure that the international price drop translates into relief for domestic consumers. Following a week where the agency prescribed a minimum price rollback to protect motorists, the DOE has shifted its focus to long-term supply security.

Under the framework of Executive Order No. 110, which remains in effect following the declaration of a State of National Energy Emergency, the government is tightening its oversight of the downstream oil sector.

The energy department has ordered oil companies to provide daily updates on storage capacity and inventory levels. This directive mandates that private firms coordinate with the state-run Philippine National Oil Co. and the PNOC Exploration Corp. to maximize the use of available storage infrastructure.

The goal is to build a sufficient buffer that can insulate the domestic market from future volatility or supply disruptions.

“Industry participants are likewise directed to comply with such utilization, subject to technical feasibility, reinforcing a whole-of-industry approach to energy security,” the DOE said in a statement. Officials warned that companies failing to comply with the reporting and storage requirements could face the suspension of their business permits.