Fuel price freefall continues despite supply threats
MOTORISTS in the Philippines are expected to see mixed fuel price adjustments next week, with gasoline prices increasing and diesel prices decreasing.
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Fuel prices are poised for another round of substantial cuts next week, continuing this week's massive rollbacks despite renewed threats to global oil supplies from escalating attacks on Middle East energy infrastructure and shipping routes.
Based on the first four days of trading in the Mean of Platts Singapore (MOPS) and foreign exchange averages, gasoline prices could fall another P3 to P4 per liter, while diesel prices may drop P4 to P5 per liter.
If realized, the latest adjustments would bring cumulative two-week price reductions to as much as P20.80 per liter for gasoline and P9.10 per liter for diesel, providing further relief to motorists and businesses grappling with elevated operating costs.
The projected cuts follow the P16.80-per-liter rollback for gasoline and P4.10 for diesel implemented from 10 to 16 November.
In Metro Manila, gasoline prices could fall to as low as P57.70 per liter for RON 91, while regular diesel could drop to P79.40 per liter, based on prevailing retail prices and the projected adjustments.
Jetti Petroleum Inc. President Leo Bellas said diplomatic developments continued to push international oil prices lower, although escalating supply threats have recently triggered a rebound.
“Diplomatic headlines continue to push oil prices lower this week despite lingering supply risks.
However, growing supply disruption worries as attacks on Saudi energy infrastructure and shipping through the Strait of Hormuz have escalated, have caused prices to rebound recently,” Bellas said over the weekend.
The rebound revealed the fragility of the downward price trend, as threats to Saudi energy facilities and shipping through the Strait of Hormuz could reverse recent gains for fuel consumers.
The Strait of Hormuz is a critical passage for global oil shipments, making disruptions along the route a major risk to international supply and prices.
The estimates remain preliminary as they exclude week-on-week adjustments in ocean freight and insurance costs. The Department of Energy will announce the final allowable price adjustments on Monday.