Motorists are getting a major reprieve at the pumps this week as oil companies implement hefty fuel price rollbacks. However, industry players warn that volatility in the global oil market could put renewed upward pressure on prices.

Effective this morning, gasoline prices will drop by P4.70 per liter, diesel by P4.30 per liter, and kerosene by P4.88 per liter, according to the Department of Energy.

Based on the previous week’s price levels, the latest adjustments could bring estimated gasoline prices in Metro Manila to around P64.27 to P94.47 per liter, depending on the gasoline grade, brand, and location.

Regular diesel could range from about P74.99 to P93.90 per liter, while diesel plus could settle between P86.40 and P99.60 per liter. Kerosene could range from approximately P98.03 to P131.13 per liter.

Substantial rollback

The substantial rollback comes as international crude and refined fuel prices weakened during the trading week amid expectations of improving shipping conditions in the Middle East and increased fuel availability in Asia.

Jetti Petroleum Inc. president Leo Bellas said both gasoline and diesel weakened as crude oil prices declined sharply during the week.

“Diesel and gasoline weakened during the week as crude prices fell sharply on expectations that Middle East shipping conditions could gradually improve,” Bellas said.

Developments in China

He also pointed to developments in China as another factor easing pressure on regional fuel prices.

“The relaxation of China’s clean product export ban and resumption of refined fuel exports led to a surge in both gasoline and diesel availability and loosened regional supply, easing Asian price benchmarks,” Bellas said.

Despite the sizable rollback, however, motorists may not be out of the woods yet.

Bellas noted that crude oil prices have recently rallied amid continued uncertainty surrounding the reopening of the Strait of Hormuz and the resumption of oil flows from the Middle East — developments that could again exert upward pressure on refined petroleum products.

“However, with the recent rally in crude prices due to uncertainty over the reopening of the Strait of Hormuz and resumption of flows from the Middle East, diesel and gasoline have likewise rebounded as structural tightness remains,” he said.