Daily TribuneIndustry sources say gasoline prices, driven by sustained uncertainty in international trading, may increase by P1.00 to P4.00 per liter. Diesel prices, meanwhile, may reverse course following this week’s increase, with a potential rollback of P6.00 to P8.00 per liter.
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FUEL companies are rolling back pump prices, bringing some diesel prices back below the P100-per-liter mark starting today. Prices of gasoline have also been reduced.
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Fuel prices are poised for another mixed adjustment next week, still due to the continued volatility in the global oil market.
An industry source said Friday the estimates showed that gasoline prices may increase by around P1.00 to P4.00 per liter, driven by sustained uncertainty in international trading.
Diesel prices, meanwhile, may reverse course following this week’s increase, with a potential rollback of P6.00 to P8.00 per liter.
Projections based on 4-day trading, forex averages
The projections were based on four-day trading and foreign exchange averages from Monday to Thursday, with Friday’s market movements yet to be included in the calculation.
“Prices on diesel and other middle distillates have moved in tandem with crude oil, which eased down this week on diplomatic signals from both the US and Iran on the latest peace proposal in the Middle East,” the source said.
The lower diesel price this week is further weighed down by the continued easing of the cargo premium. Gasoline price however is buoyed by a looming supply tightness due to seasonal demand increase, which also pushed the cargo premium higher this week.
This week, local pump prices rose anew, with diesel reversing earlier expectations of a rollback and joining another increase in gasoline prices, which added pressure on transport costs and inflation concerns.
The Department of Energy (DoE) announced on Monday that gasoline prices increased by P2.21 per liter, while diesel prices rose by P2.66 per liter.
Higher-grade gasoline prices have reached as much as P107.11 per liter, while diesel prices climbed to P102.16 per liter. Diesel Plus prices also increased by the same amount to as high as P107.48 per liter.
Kerosene, however, provided some relief with a rollback of P3.53 per liter.
Prices tied to overseas oil market movements
The DoE said fuel prices remain tied to movements in international oil markets, which continue to influence local pump prices.
Despite the latest increases, the agency said the country’s fuel supply remains stable.
As of 1 May, petroleum reserves were equivalent to 53.71 days of supply, with diesel at 54.58 days and gasoline at 52.64 days.
Kerosene posted the highest inventory buffer at 166.67 days, while liquefied petroleum gas recorded the lowest at 40.46 days.
