Diesel hike, steady gasoline likely next week
Fuel prices are expected to move in mixed directions next week, with diesel likely to increase while gasoline seeing little to no change, based on early market indicators.
Jetti Petroleum president Leo Bellas said initial estimates for the week of Jan. 5 point to a possible diesel price hike of P0.20 to P0.40 per liter.
Gasoline prices, meanwhile, could either slip or rise by as much as P0.10.
The outlook was based on the average of Mean of Platts Singapore prices and foreign exchange rates for the first four trading days of the week, compared with the full-week average from the previous period.
Benchmark prices
Bellas said both diesel and gasoline benchmark prices in the region have slightly declined week on week, as refinery output recovered following scheduled maintenance turnarounds. This increase in supply helped ease some pressure on refined product prices in the Asian market.
However, he said the downward trend in benchmarks was partly offset by higher freight costs and elevated premium components in the fuel price buildup.
These factors, Bellas explained, remained under pressure amid growing concerns that ongoing geopolitical developments could disrupt global oil supplies.
Market players have been closely monitoring geopolitical risks, which have continued to inject volatility into oil trading despite improving refinery operations in the region.
Higher shipping costs and risk premiums have also weighed on fuel pricing, limiting the impact of softer benchmark prices.
If implemented, the projected diesel increase would add to transport and logistics costs, which are more sensitive to diesel prices.
Gasoline users, however, may see some relief or minimal movement at the pumps should prices remain flat.
Oil companies are expected to finalize next week’s adjustments once the full set of international price data is available.
