Fuel prices fluctuate due to global volatility

The Philippines will see mixed adjustments in fuel prices next week, according to Rodela Romero, director of the Department of Energy’s (DoE’s) Oil Industry Management Bureau.

Based on four days of trading in Mean of Platts Singapore (MoPS), Romero said in a text message on Friday that gasoline prices are set to decrease by P0.40 to P0.70 per liter, while diesel may remain unchanged or experience a rollback of P0.20 per liter. Meanwhile, kerosene prices are anticipated to rise by P0.10 to P0.20 per liter.

She said the potential price movement reflects varied factors influencing global oil markets.

The DoE attributed the increase in kerosene to optimism about US fuel demand, particularly given recent decreases in US crude and gasoline inventories.

Geopolitics hang heavy

Additionally, geopolitical tensions are driving up oil prices, with Israel’s retaliatory strikes on Iranian military sites, though avoiding oil infrastructure, adding to global supply concerns. The tightening of gasoil and jet fuel supplies in Asia is also supporting higher kerosene prices.

Conversely, the expected drop in gasoline prices and potential diesel rollback are due in part to diplomatic efforts to address Middle East tensions.

Israeli Prime Minister Benjamin Netanyahu has signaled plans to call a meeting focused on a diplomatic solution to the Lebanon conflict, potentially easing geopolitical pressures on oil prices, though risks remain as the regional situation stabilizes.