In time for Christmas week, fuel prices are dropping starting this morning.

In separate advisories on Monday, fuel retailers said gasoline prices have gone down by P0.80 per liter, diesel by P1.30 per liter and kerosene by P1.60 per liter.

The rollback comes as global oil markets remain weighed down by ample supply and weak demand, while optimism over a potential Russia-Ukraine peace agreement also lifts market sentiment.

Robust supply, weak demand

“The bearish theme dominated all week is attributed to robust supply and weak demand overshadowing temporary geopolitical spikes,” Department of Energy Oil Industry Management Bureau Director Rodela Romero said.

He added that market sentiment has also been lifted by “optimism over a peace agreement between Russia and Ukraine.”

Meanwhile, Jetti Petroleum Inc. president Leo 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.

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