The Philippine government’s newly secured safe passage for energy shipments through the Strait of Hormuz is part of its broader risk management strategy and is not expected to immediately lower fuel prices, Energy Secretary Sharon Garin.
In a Facebook post, Garin said the Philippines had obtained “safe and preferential access” through the vital shipping route, helping reduce the risk of oil supply disruptions amid the ongoing US-Israel conflict with Iran.
According to Garin, the arrangement strengthens protection for Philippine-linked cargo and improves safety for Filipino seafarers passing through the area.
“This is risk management, because in a time of global tension, risk reduction is already a meaningful gain,” she said.
However, Garin stressed that the agreement should not raise expectations of an immediate drop in fuel prices.
“We also want to manage expectations: This development will not immediately bring down fuel prices, nor does it resolve our long-term structural challenges in energy. Those remain priorities that we continue to address,” she said.
She added that public questions and concerns about the deal are part of a “healthy and informed public discourse.”
The Philippines secured safe passage through the Strait of Hormuz — a key waterway that carries around 20 percent of the world’s oil and liquefied natural gas supply — after a phone conversation between Foreign Affairs Secretary Ma. Theresa Lazaro and Iranian Foreign Minister Seyed Abbas Araghchi.
The Department of Foreign Affairs earlier said Araghchi assured the Philippines that Iranian authorities would allow the safe, unhindered and speedy passage of Philippine-flagged vessels, energy shipments and Filipino seafarers through the strait.
Still, Garin emphasized that the arrangement is not a complete solution.
“For clarity: This is not a perfect solution, and it does not eliminate all risks,” she said.
Despite the development, local fuel prices are still expected to rise sharply next week.
Based on Mean of Platts Singapore trading from March 30 to April 2, an oil industry source said diesel prices could increase by P17 to P19 per liter.
If realized, regular diesel prices could climb to as high as P165 per liter, while premium diesel may exceed P170 per liter.
Gasoline prices are also projected to increase by P3 to P5 per liter, potentially bringing super premium gasoline to around P120 per liter, premium gasoline to P117, and regular gasoline to P110.
Department of Energy data showed that the latest adjustment, the 13th price increase this year, has brought total net increases to P48.20 per liter for gasoline, P90.05 for diesel, and P78.10 for kerosene.
