Fuel Price Reduction Announced: Gasoline, Diesel, and Kerosene Drop by ₱1

Motorists in the Philippines will experience a minor alleviation in fuel costs this week as several fuel retailers have announced reductions in pump prices. Effective July 1, 2025, Seaoil Philippines Corp. and Shell Pilipinas Corp. will lower the price of gasoline by ₱1.40 per liter, diesel by ₱1.80, and kerosene by ₱2.20. Cleanfuel will implement similar price reductions for gasoline and diesel, although it does not offer kerosene.

This rollback follows a series of price increases over the past several weeks, which included six consecutive weeks for gasoline, four for diesel, and three for kerosene. The recent adjustments, while welcomed by consumers, are not sufficient to counterbalance the cumulative price increases experienced in the previous month.

According to the Department of Energy-Oil Industry Management Bureau (DOE-OIMB), the recent drop in prices is attributed to a ceasefire announcement between Israel and Iran, which has helped stabilize global crude oil prices. The DOE-OIMB had projected a downward adjustment during this period, reflecting broader trends in the international oil market.

Last week, fuel prices surged significantly, with increases of ₱3.50 for gasoline, ₱5.20 for diesel, and ₱4.80 for kerosene. These fluctuations reflect the volatile nature of the global oil market and its direct impact on local consumers.

Industry experts have noted that while the current rollback offers some relief, the overall trend of rising fuel prices remains a concern. Dr. Emily Reyes, an economist and senior researcher at the Philippine Institute for Development Studies, emphasized that sustained fluctuations in oil prices could lead to increased inflationary pressures across various sectors. "The recent adjustments are a small relief, but they do not address the broader issue of persistent price volatility in the oil market," she stated in her commentary published on June 28, 2025.

Moreover, fuel price adjustments have significant implications for the transportation sector and the economy at large. According to the latest report from the World Bank published in May 2025, fuel price fluctuations have a cascading effect on transportation costs, which can influence food prices and overall economic stability.

In the interim, local consumers will be watching closely as other fuel retailers are expected to announce their own price adjustments. The ongoing geopolitical developments and their impact on crude oil prices will likely continue to shape the landscape of fuel pricing in the Philippines. As the market adjusts to these changes, both industry stakeholders and consumers will need to navigate the complexities of an unpredictable oil market.