P24.9 Price Drop For Diesel – BBM

The biggest fuel price cuts since the easing of tension in the Middle East are seen to take place next week, with diesel cost getting slashed by P24.94 per liter, gasoline by P3.41, and kerosene by P2.

President Marcos made the announcement in his vlog posted on YouTube. “Next week, there will be more major cuts in oil prices,” Marcos said.

Global oil prices have steadily declined this week, driven by easing geopolitical tensions abroad, including the recently announced ceasefire between Israel and Lebanon. 

“This is bigger than last week’s rollback. And the message is clear for all of us: Relief is coming,” the Chief Executive said. He didn’t reveal the exact date of the price cuts, but an industry insider said they will be implemented on Tuesday, April 22.

Marcos also called on oil companies to implement the rollback properly and without delay.

“Give the people what they deserve,” the President said. “Every centavo reduction should be felt by every Filipino,” he said.

“Our time should be spent on our family, school and work – not on long lines,” the President said.

“Since diesel prices are very high to begin with, the big decline is due to the significant unwinding of the risk premium that has built up on the price because of the war in the Middle East,” an industry source told The Philippine STAR.

Marcos also said the provision of P10 fuel discount for public utility vehicles, and the Service Contracting Program for PUV drivers would continue.

The President also announced that the Land Transportation Office has extended by three months the validity of licenses and motor vehicle registrations.

“For example, if your license or registration expires this month, it will still be valid until July, and you will not pay any fines or any surcharges,” Marcos said.

Aside from driver’s licenses and registrations, the validity of student permits and conductor’s licenses has also been extended, Marcos added.

“We understand the situation of every Filipino during this time. We will not stop...We will not let this relief not reach the people,”

Iran has declared the Strait of Hormuz, a critical maritime chokepoint that typically carries about 20 percent of global oil and gas supplies, “completely open” to all commercial vessels during the Israel-Lebanon truce. 

United States President Donald Trump thanked Iran for reopening the strait but stressed that Washington’s naval blockade of Iranian ports would remain in place until an agreement is reached with Tehran. 

“Global crude oil prices and European natural gas prices declined after the promised reopening of the Strait of Hormuz bolstered optimism that the US-Iran conflict will reach an end and ease disruptions to global energy markets,” said Michael Ricafort, chief economist at Rizal Commercial Banking Corp.

Dubai crude, a pricing benchmark for crude oil in the Asia-Pacific market, closed 0.55 percent lower to $104.93 a barrel on April 16.

A local energy official has said the US blockade in the strait is apparently not being priced in by global markets.

Oil companies are expected to announce the domestic pump price adjustments tomorrow. 

This week, diesel, gasoline and kerosene prices went down by at least P20.89, P4.43 and P8.50 per liter, respectively.

Service contracting starts

Even with the promising developments in the Middle East, the government will continue implementing measures aimed at helping public utility drivers weather through the crisis. 

The Department of Transportation said over 19,000 PUVs nationwide will start operating under the government’s net service contracting program beginning tomorrow.

“We are expecting by Monday that we will have over 19,000 modern and traditional jeepneys, UV Express, as well as buses in the EDSA busway, will participate in the program, and commuters will feel its impact,” said DOTr Secretary Giovanni Lopez during a news forum.

The net service contracting program started last Wednesday, but Lopez noted that only a few drivers and operators joined the rollout because the onboarding process was slow.

“We have given instructions to the Land Transportation Franchising and Regulatory Board (LTFRB) to approach terminals to fast-track onboarding for the program,” the transportation chief said.

“I instructed LTFRB that they should be onboarded within 24 so they can start joining the program the following day,” Lopez added, emphasizing that some drivers, particularly those who are elderly, have struggled with the requirements of online registration. 

Lopez emphasized that the program is not just aimed at securing the PUV drivers’ income, but also to help the riding public in their daily commute.

The DOTr has allocated P1 billion for the first two weeks of implementation, with P800 million eyed for the land transportation service contracting.

The transportation chief said their request for additional P5 billion funding is “approved in principle” by the budget department.

“Once we receive the additional funding, we can expand more PUVs to join as we designate more routes for them to ply,” Lopez said.

The government has initially estimated that around 50,000 PUVs will participate in the net service contracting scheme.

The government has also released P519,24 million in financial assistance to over 103,000 delivery riders in Metro Manila.

Facilitated by the Department of Information and Communications Technology, around 103,848 delivery riders have received P5,000 each in cash release assistance from the Department of Social Welfare and Development.

DICT Secretary Henry Aguda said the initiative is in compliance with President Marcos’ directive to assist transport and logistics sectors which are grappling with high costs of petroleum products.

By coordinating with authorized private express and/or messengerial delivery services operators (PEMEDES), the DICT has streamlined the submission of the lists of eligible beneficiaries to the Land Transportation and Franchising Regulatory Board.

Moreover, Aguda said they have extended the amnesty program for unlicensed operators until June 30 this year to allow them to legitimize their operators.

“By extending this amnesty, we are not just enforcing regulation, we are opening doors for more operators and riders alike to be recipients of government support initiatives and financial assistance,” he said in a statement.

Aguda considers PEMEDES operators and delivery riders as the backbone of modern commerce and should be protected at all times. – With additional reports from Andrew Ronquillo and Emmanuel Tupas