Philippines Expects Fuel Price Drop After US-Iran Peace Deal

The Department of Energy of the Philippines expects pump prices for diesel and kerosene to decrease on June 16, 2026, as a direct result of a peace deal between the United States and Iran. This agreement ends a four-month conflict in West Asia that had severely disrupted global oil markets and pushed fuel costs higher for consumers in the Philippines. Diesel prices are projected to drop by P3.71 to P5.71 per liter, while kerosene is expected to decrease by P0.50 to P2.50 per liter. Gasoline price movements remain volatile, with projections indicating either a slight increase of P1.68 or a decrease of P0.32 per liter.

Energy Undersecretary Alessandro Sales projected that fuel prices could return to pre-war levels of P50 to P60 per liter within six to 12 months. He cautioned that while the peace deal provides a positive trajectory, the recovery of the disrupted global supply chain will not be instantaneous, meaning consumers may not see a full return to stable pricing immediately.

To ensure stability during this transition, the Department of Energy reported that as of June 12, the national oil and fuel supply is sufficient to last an average of 46.37 days. This inventory buffer is intended to protect the domestic market from further volatility as global production restarts and logistics normalize following the cessation of hostilities in West Asia.