Gasoline seen plunging P13.50 as oil markets ease

Motorists could get a massive reprieve at the pumps next week, with gasoline prices poised to plunge by up to P13.50 per liter, potentially delivering one of the steepest single-week rollbacks as easing Middle East tensions and improving global oil supply prospects drag down fuel prices.

Based on preliminary market data from Monday to Thursday, gasoline prices could fall by P12.50 to P13.50 per liter.

At the same time, diesel could decline by P4.30 to P4.50 per liter, offering much-needed relief to consumers and transport operators battered by soaring fuel costs.

Substantial savings

For motorists, the projected gasoline rollback translates to savings of as much as P675 for a full 50-liter tank, while diesel users could save up to P225 for the same volume.

If realized, the reductions could bring gasoline prices in Metro Manila to as low as P65.10 per liter for RON 91, P65.50 for RON 95 and P70.39 for RON 97/100, based on estimated prevailing retail prices.

Diesel prices could likewise retreat to as low as P84.40 per liter.

Global oil prices weakened

Jetti Petroleum Inc. president Leo Bellas said on Friday that global oil prices weakened as diplomatic efforts to resolve the US-Iran conflict helped calm fears of further supply disruptions, even as attacks on shipping routes and energy infrastructure continued.

“Oil weakened this week as diplomatic efforts to end the United States-Iran conflict eased renewed escalation concerns in the Middle East, despite lingering supply disruption worries as attacks on shipping in the Strait of Hormuz and Saudi energy infrastructure continue,” Bellas said.

Sweeping Democratic victories pushed down oil prices

He noted that the perceived lower risk of further escalation following the Democratic Party’s sweeping victories in the recent US midterm elections also pressured oil prices.

Apart from easing geopolitical tensions, expectations of increased fuel supply further weighed on gasoline and diesel prices.

Bellas explained that South Korea’s easing of diesel export restrictions and China’s additional fuel export quotas strengthened the outlook for regional supply.

Gasoline prices, in particular, fell sharply despite firming regional demand as traders anticipated healthier supply from China.

The stronger Philippine peso against the US dollar also helped push domestic fuel price projections lower by reducing the cost of imported petroleum products.

The anticipated reductions would mark a sharp reversal from the recent surge in pump prices, which has squeezed household budgets and raised operating costs for businesses dependent on fuel.