Fuel prices are projected to decline sharply, with global oil markets shedding much of the geopolitical “war premium” that drove prices higher earlier this month.

Industry estimates based on Monday-to-Thursday data indicate diesel prices could fall by P7.50 to P9.50 per liter, while gasoline prices may decline by P3 to P5 per liter next week. 

Supply risks reassessed

Jetti Petroleum president Leo Bellas said world oil prices retreated this week as traders reassessed supply risks in the Middle East, unwinding premiums built into crude prices amid fears of disruptions in the region.

“World oil prices declined this week as the market has started to factor in the possible reopening of the Strait of Hormuz and the eventual return of Middle Eastern crude supplies after the United States and Iran reached an interim agreement,” Bellas said in a text message on Friday.

The Strait of Hormuz, a critical artery for global oil shipments, had become a focal point for supply concerns in recent weeks. As fears of a prolonged disruption eased, oil markets began pricing out the risk of supply shortages, pulling crude benchmarks lower.