P5/L rollback for diesel, gasoline seen Aug. 11
Motorists may see bigger price rollbacks in diesel and gasoline next week even amid the volatility in the Middle East conflict.
Based on estimates from Jetti Petroleum president Leo Bellas based on the first four days of trading in the Mean of Platts Singapore and foreign exchange movements, local diesel and gasoline prices may drop by P4.50 to P5 per liter on Aug. 11.
“Oil price retreated as renewed hopes of a diplomatic breakthrough to the US-Iran conflict eased the geopolitical risk premium, despite the lingering uncertainty and persistent risks to Red Sea shipping,” he said on Friday.
‘Continuing disruption’
“Fuel products declined in line with crude, with Asian diesel and gasoline falling sharply as easing geopolitical risks reduced the recent supply premium,” Bellas added.
The peso gaining ground against the US dollar also helped lower domestic pump prices, he noted.
“Despite the recent pullback in prices, fundamentals remain relatively firm due to strong demand amid tightening supply as the continuing disruption to Middle East exports through the Strait of Hormuz and from Saudi Red Sea ports limit the availability of feedstock for Asian refiners,” Bellas said.
Fuel retailers will announce their official price adjustments on Monday.
This week, gasoline and diesel prices fell by at least 73 centavos and 60 centavos per liter, respectively. Kerosene prices also dropped by P2.09 per liter.
