Motorists may get another round of substantial relief at the pumps next week, with gasoline and diesel prices seen falling by P4.50 to P5 per liter as international oil prices retreat and the peso strengthens against the United States (US) dollar.

Based on current estimates, gasoline could retail at around P63.97 to P94.27 per liter, depending on the grade and retailer, while regular diesel could range from P74.29 to P93.70 per liter. Diesel plus could settle between P85.70 and P99.40 per liter.

A P4.50 to P5.00 per liter rollback would translate to savings of about P225 to P250 for a 50-liter full tank, providing some respite not only to motorists but also to transport operators and businesses grappling with higher fuel costs.

Leo Bellas, president of Jetti Petroleum, Inc., said the decline was driven by renewed optimism over a possible diplomatic breakthrough in the US-Iran conflict, which has reduced some of the geopolitical premium built into oil prices.

Breakthrough hope high

“Oil price retreated as renewed hopes of a diplomatic breakthrough to the US-Iran conflict eased the geopolitical risk premium, despite the lingering uncertainty and persistent risks to Red Sea shipping,” Bellas said in a text message on Friday. 

Refined petroleum products followed crude prices lower, with Asian diesel and gasoline prices falling sharply as concerns over potential supply disruptions eased.