Motorists will see a sharp drop in diesel prices starting this morning, as oil companies roll back pump prices by nearly P4 per liter following a decline in international petroleum prices.

Seaoil Philippines said Monday it will slash diesel prices by P3.83 per liter, kerosene by P3.84 per liter and gasoline by P0.32 per liter, effective 6 a.m.

Shell will implement a similar rollback at the same time, cutting diesel and kerosene by P3.80 per liter and gasoline by P0.30 per liter, all inclusive of value-added tax.

Fuel prices were raised just last week

Last week, oil companies raised diesel prices by around P2.30 to P2.31 per liter and gasoline by P1 to P1.10 per liter. Seaoil also increased kerosene by P0.91 per liter.

Based on the latest prevailing Metro Manila price ranges, regular diesel could fall to an estimated P75.47 to P95.98 per liter, while premium diesel could retreat to around P85.46 to P99.32 per liter. This means even the upper end of the estimated premium diesel range could slip back below the P100-per-liter mark.

Gasoline could range from roughly P64.88 to P97.35 per liter across different grades, while kerosene could fall to around P96.17 to P130.48 per liter.

Mediation to end the war and reopen Strait of Hormuz

Jetti Petroleum Inc. president Leo Bellas said prices were further weighed down by signals of a potential return to mediation to end the war and reopen the Strait of Hormuz after Iran said it had resumed talks with Oman, although supply disruption risks remain.

“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.

Increase in regional inventories

Increasing regional inventories as supplies from China and India continued to rise likewise pressured petroleum product prices.

Bellas had cautioned that the recent rebound in world oil prices following reports that the United States was not interested in returning to previous ceasefire deal terms with Iran could cap the rollback.