Oil firms prepare for another round of fuel price rollback
Published Apr 22, 2026 02:59 pm
A motorcycle rider refuels at a station in Quezon City on Tuesday, April 21, following a significant rollback in fuel prices. Oil companies implemented a major price cut this week, ₱24.94 per liter decrease for diesel, while gasoline and kerosene prices were slashed by ₱3.41 and ₱2.00, respectively.
(Photo by Santi San Juan I MB)
Fuel retailers are on track to extend their streak of price rollbacks next week, though the pace of the decline is projected to moderate amid tightening regulatory environment and persistent Middle East volatility.
Based on the first two days of trading for the Mean of Platts Singapore (MOPS), the regional pricing benchmark, the price of diesel may decrease by ₱10 to ₱12 per liter. Gasoline prices are estimated to see a narrower reduction of ₱0.50 to ₱1.50 per liter.
Oil companies are scheduled to formally announce these adjustments on Monday, April 27.
The projected rollbacks follow a week of aggressive government intervention. The Department of Energy (DOE) has moved to prescribe domestic pump prices under Executive Order 110, which declared a state of national energy emergency.
Under these emergency guidelines, the agency has transitioned from mere monitoring to active price setting to shield consumers from global market swings.
“The rollback is now mandated by the government,” Energy Secretary Sharon Garin said in a recent briefing. “It is prescribed by the government as announced by the President.”
The DOE warned that companies failing to implement the mandated reductions face criminal prosecution, including potential imprisonment for executives and fines under the Downstream Oil Industry Deregulation Act.
Meanwhile, market sentiment remains tethered to the Strait of Hormuz, a critical transit point for global crude. Prices softened recently as a temporary ceasefire between Israel and Lebanon improved risk appetite.
Additionally, renewed optimism regarding the reopening of the Strait ahead of anticipated US–Iran talks has pressured crude premiums lower.
“Crude prices softened as risk sentiment improved following a temporary ceasefire and renewed optimism over the potential reopening of the Strait of Hormuz,” the DOE said, referring to recent rate movements.
On the supply side, the significant drop in diesel prices is partly attributed to the re-emergence of South Korean cargoes. While overall supply recovery remains constrained, the arrival of limited volumes from North Asia has provided some relief to regional balances.
Despite the current downward trend, analysts warned that the outlook remains fragile. Any escalation in the Middle East or a reversal in the status of the Strait of Hormuz blockade could abruptly halt the streak of rollbacks and force another recalibration of domestic prices.