Pump prices of petroleum products are expected to decline during the Christmas week as global oil markets remain weighed down by ample supply and weak demand.

In a statement on Friday, Department of Energy Oil Industry Management Bureau Director Rodela Romero said the bearish trend continued despite temporary geopolitical tensions.

Bearish theme dominating all week

“The bearish theme dominating all week is attributed to robust supply and weak demand overshadowing temporary geopolitical spikes,” Romero said, adding that market sentiment has also been lifted by “optimism over a peace agreement between Russia and Ukraine.”

Based on four-day trading in the Mean of Platts Singapore, Romero said pump prices next week could see rollbacks of around P1.20 per liter for gasoline, P1.70 per liter for diesel, and P1.75 per liter for kerosene.

Meanwhile, Jetti Petroleum, Inc. President Leo Bellas said price movements this week point to rollbacks of P1.00 to P1.20 per liter for diesel and P0.60 to P0.80 per liter for gasoline.

Oversupply concerns pressuring prices

Bellas said oversupply concerns continue to pressure prices, citing the prospect of a Russia-Ukraine ceasefire, easing supply tightness as refineries return from maintenance, increased exports from China, and expectations of weaker global gasoline demand during the winter season.

This week, gasoline prices rose by P0.20 per liter, while kerosene and diesel prices fell by P0.20 per liter each.

Fuel price adjustments are implemented every Tuesday by oil companies nationwide.