MIXED fuel price movements are expected in the Philippines next week, with a gasoline rollback and increases in diesel and kerosene, driven by easing US-Iran tensions, ample supply, and softer global demand.
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Motorists could see a sharp rollback in diesel prices next week, potentially reversing more than the latest increase, as easing supply concerns and rising regional inventories pull down international petroleum prices.
Industry estimates from Monday to Thursday show diesel prices are likely to decline by P3.50 to P4 per liter, while gasoline could fall by P0.25 to P0.75 per liter next week.
Jetti Petroleum Inc. president Leo Bellas said Friday petroleum prices declined this week as the market viewed threatened US sanctions as posing less risk to physical oil supplies than an escalation of military action.
Oil market’s anxiety reduced
“Prices declined this week as threatened US sanctions fell short of the market’s expectations and the market viewed the economic pressure as a lower-risk path for physical supply than a military escalation, reducing the oil market’s anxiety and easing immediate supply concerns,” Bellas said.
Prices were further pressured by signs of a possible return to mediation aimed at ending the war and reopening the Strait of Hormuz after Iran said it had resumed talks with Oman.
Supply conditions, however, remain constrained, leaving the market exposed to renewed disruptions.
More refined petroleum products entering the market have also helped ease regional supply tightness.
“Rising refined products outflows from China due to renewed refined product export allowances, including incremental flows from the US and India, helped ease some regional shortages and keep the markets supplied,” Bellas said.
