Motorists can expect relief at the pumps next week as prices for gasoline and diesel are projected to drop following consecutive price hikes, according to an industry source.
Estimates based on the first four days of trading in the Mean of Platts Singapore (MOPS) and foreign exchange averages suggest diesel prices could fall by P3.50 to P4.00 per liter, while gasoline prices may see a rollback of P0.25 to P0.75 per liter.
The anticipated price cuts follow a shift in global oil market sentiment.
“Prices declined this week as threatened US sanctions fell short of the market’s expectations and viewed the economic pressure as a lower-risk path for physical supply than a military escalation, reducing the oil market’s anxiety and easing immediate supply concerns,” the industry insider said.
The source added that potential diplomatic developments have also contributed to the decline. “Prices are 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 the physical supply picture reflects a still-constrained market and supply disruption risks remain.”
The expected rollback follows price increases implemented on August 25, when oil firms raised gasoline by P1.08 per liter, diesel by P2.31 per liter, and kerosene by P0.95 per liter.
That adjustment marked the 34th price movement of the year, pushing year-to-date net increases to P54.92 per liter for gasoline, P59.06 per liter for diesel, and P51.65 per liter for kerosene.
Oil companies traditionally announce official price changes every Monday, with adjustments taking effect the following Tuesday morning.