Relief at pumps starts Tuesday

Motorists will get a welcome reprieve as fuel prices drop starting tomorrow morning, following signs of easing geopolitical tensions in the Middle East.

Effective 1 July, fuel retailers will cut prices by P2.20 per liter for kerosene, P1.80 for diesel, and P1.40 for gasoline—offering relief after last week’s sharp hikes of P3.50, P5.20, and P4.80 per liter, respectively.

“The bearish factor that counterbalanced the bullish price last week is the announcement of President Trump of a possible ceasefire between Israel and Iran, thus crude oil future extends their drop,” said Rodela Romero, director of the Department of Energy’s Oil Industry Management Bureau.

In a separate comment, Jetti Petroleum Inc. President Leo Bellas noted that “concerns over Middle East supply disruption eased following the ceasefire, with geopolitical risk premium on prices dropping sharply.”

“The market’s focus returned to fundamentals with the de-escalation of the conflict, with prices recovering from the drop early this week on the back of higher demand,” Bellas added.