Fuel price rebound likely next week after sharp rollback
A jeepney pushes its way to a gasoline station in Quezon City on Wednesday to ensure that it can service passengers in the area.
PHOTOGRAPH by Analy Labor for DAILY TRIBUNE
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A jeepney pushes its way to a gasoline station in Quezon City on Wednesday to ensure that it can service passengers in the area.
PHOTOGRAPH by Analy Labor for DAILY TRIBUNE
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Motorists may get little time to enjoy this week’s fuel price relief, as another hefty pump price increase is shaping up for next week—with the projected diesel hike threatening to erase nearly all of the latest rollback.
Industry forecasts based on Monday to Thursday trading data point to an increase of P2.50 to P3.00 per liter for gasoline and a steeper P3.75 to P4.25 per liter for diesel next week.
If the forecast holds, Metro Manila gasoline prices could climb to an estimated P66.70 to P97.47 per liter, depending on the fuel grade and station.
Diesel could rise to around P79.45 to P98.15 per liter, while Diesel Plus could reach P90.45 to P101.55 per liter.
The potential increase would quickly eat into the savings consumers received this week, when gasoline prices dropped by P4.70 per liter and diesel by P4.30 per liter.
Jetti Petroleum, Inc. President Leo Bellas said Friday that the renewed upward pressure stems from a global oil market that has grown increasingly doubtful about prospects for easing supply disruptions.
“World oil prices rose this week as optimism for a peace deal and near-term reopening of the Strait of Hormuz traffic faded, with markets becoming more skeptical as negotiations are now further complicated by competing demands for compensation over the five-month conflict,” Bellas said.
Supply concerns are also keeping the market on edge.
Bellas said continued declines in global inventories are adding pressure to an already tight market, with Middle East Gulf flows and Black Sea exports constrained and the possibility of sanctions-related disruptions threatening to further restrict crude availability.
The squeeze is particularly evident in refined fuels.
“Diesel and gasoline prices surged as diplomatic efforts to reopen and normalize transit through the Strait of Hormuz have stalled, and the continued decline of global product inventories due to refinery output disruptions is keeping markets tighter than crude,” Bellas said.
Gasoline is also drawing support from positive regional demand signals amid uncertainty over Chinese export volumes, while Middle East supply risks and constrained Russian exports continue to underpin diesel, he added.
There are still forces that could keep the looming increase from becoming even steeper.
“Recent signs of weaker global demand and build in US crude inventories have weighed on prices and may temper further gains,” Bellas said.
