Fuel prices likely to fluctuate due to global market volatility

The Philippines will see mixed adjustments in fuel prices next week, according to Rodela Romero, Director of the Department of Energy’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 crude and gasoline inventories.

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.

Romero emphasized that while fuel prices remain volatile, the DOE is closely monitoring developments to ensure domestic adjustments accurately reflect global market conditions.

This week, gasoline prices rose by P0.20 per liter, while diesel and kerosene each increased by P0.50 per liter. This followed last week's rollbacks of P0.50 per liter for gasoline, P0.70 per liter for diesel, and P0.85 per liter for kerosene.

Local companies announce price adjustments every Monday, with the changes taking effect the following day.

They adjust their prices weekly based on the movement of MOPS — the regional pricing benchmark adopted by the deregulated downstream oil sector.