Diesel plunges, gasoline barely moves

Diesel users will get the lion’s share of this week’s fuel price relief, with pump prices plunging by P7.57 per liter, while gasoline motorists will have to make do with a 24-centavo rollback.

The Department of Energy's Oil Management Bureau said Monday oil companies are expected to also slash kerosene prices by P5.85 per liter effective tomorrow morning, marking a sharp reversal from the hefty increases seen in recent weeks.

Based on prevailing retail prices in the National Capital Region before the adjustment, diesel could fall to between P84.03 and P103.23 per liter, while regular gasoline could settle at P77.82 to P102.26 per liter.

The sizeable diesel rollback also comes as commuters brace for an approved fare hike, potentially easing some of the fuel-cost pressure on public transport operators even as passengers prepare to pay more.

Jetti Petroleum Inc. President Leo Bellas attributed the uneven price movements partly to different supply conditions in the Asian diesel and gasoline markets.

“Asian diesel prices traded lower this week as Middle Eastern crude supplies improved, though supply constraints continue amid supply disruptions,” Bellas said.

Oil prices broadly retreated during the week as hopes for diplomacy in the Iran war emerged during the United Nations General Assembly meeting and recovering shipments from Saudi Arabia eased supply concerns.

The possible resumption of flows through Saudi Arabia’s East-West pipeline, amid increased shipping activity in Yanbu on the Red Sea, also pressured prices.

But Bellas said the market quickly regained some ground after Iran’s president declared during the UN General Assembly that the country would never surrender to US pressure.

While Iran remained open to diplomacy to end the war, slow progress in talks kept prices supported. A recent Houthi missile attack on Saudi Arabia also revived fears of another supply disruption.

Diesel prices have also started rebounding sharply following reports that the US is considering restricting its diesel exports, Bellas said.

Gasoline, meanwhile, did not fall nearly as much as diesel as firm regional demand and potentially lower Chinese exports kept Asian prices supported despite weaker crude prices.