(FILE PHOTO) A gas station attendant adjusted the fuel prices on 17 September 2024. Starting on that date, gasoline prices will decrease by at least P1 per liter, diesel by P1.30, and kerosene by P1.65. This reduction is due to weak global demand and concerns about oversupply, especially from China and the U.S. Recent data indicates that gasoline and diesel prices have increased by P5.85 and P3.05 per liter to date, respectively. This price reduction follows similar cuts from the previous week, driven by low demand and plans by oil-producing nations to boost output. Yummie Dingding
BUSINESS

Fuel prices drop after two-week hike 

The decline was driven by lower demand in South Korea, high US fuel inventories, progress in Ukraine-Russia ceasefire talks, and the potential impact of upcoming US tariffs.

Maria Bernadette Romero

Pump prices are down this week, snapping a two-week streak of increases, as global oil markets react to weak demand and easing geopolitical tensions.  

In separate advisories this morning, fuel retailers announced a rollback of P0.90 per liter for gasoline, P0.80 per liter for diesel, and P1.40 per liter for kerosene.  The adjustments are effective tomorrow morning.

Department of Energy Oil Industry Management Bureau Director Rodela Romero said the decline was driven by lower demand in South Korea, high US fuel inventories, progress in Ukraine-Russia ceasefire talks, and the potential impact of upcoming US tariffs.  

Jetti Petroleum president Leo Bellas added that optimism over the possible lifting of Russian sanctions and expectations of higher global oil output also contributed to the price drop.  

Despite fresh US sanctions on Iran, market concerns over tight supply have eased due to the ongoing trade war’s potential impact on oil demand.  

Last week, fuel prices rose for the second week, with oil firms raising gasoline by P0.70 per liter, diesel by P0.40, and kerosene by P0.20.