Next diesel price rollback seen at P8 to P10
Diesel prices are expected to drop further next week, a development that could bring fuel costs to an average of P100 per liter after the relentless double-digit increases following the Iran war which broke out on Feb. 28.
The new petroleum prices on Tuesday, however, may still be far from prewar levels—when fuel prices ranged from P48 to P73.61 per liter for Metro Manila motorists.
An industry source said Friday diesel prices could decrease by P8 to P10 per liter on April 28, on top of this week’s drop of P24.94 and the price decrease of P20.90 on April 14.
Next Tuesday’s expected decrease should mark the third week of big-time rollbacks after the series of double-digit increases since the escalation of the Middle East conflict from March until early April.
Recent pronouncements of a ceasefire and peace talks—between the United States and Iran, and Israel and Lebanon—have eased price pressures in the global oil market.
But continuing developments at the critical Strait of Hormuz—where a fifth of the world’s oil used to pass daily—may continue to disrupt the price and supply movements of fuel.
Renewed tensions
Motorists loading up in Metro Manila should see prices go down to as high as P101.76 per liter for regular diesel, and P136.76 per liter for premium diesel.
The industry source warned, however, that renewed geopolitical tensions in the Middle East will lead to a rebound in prices, slashing the potential for a continuous rollback.
Still, gasoline prices may inch up by only P1 per liter on April 28 or at best remain unchanged, said the source, whose forecast is based on this week’s trading sessions over the Mean of Platts Singapore (MOPS)—the basis for the pricing of refined petroleum products in Southeast Asia.
The source also took into account foreign exchange rate averages, noting that these estimates could still change after Friday’s trading session. Meanwhile, Energy Secretary Sharon Garin said the government continues to talk with other countries supplying petroleum.
In a statement, the Department of Energy said it has secured Malaysia’s commitment to help boost the Philippines’ stockpile, while Garin on Friday met with Argentine Ambassador Luis Bocalandro to discuss energy cooperation.
