MANILA — Motorists can expect another round of mixed fuel price adjustments next week, with gasoline prices likely to decline while diesel costs are projected to rise due to ongoing uncertainties in the Middle East oil market.
Based on fuel trading movements as of Thursday, Jetti Petroleum president Leo Bellas estimated that gasoline prices could decrease by PHP1.00 to PHP1.50 per liter. In contrast, diesel prices may climb by PHP4.00 to PHP4.50 per liter.
According to Bellas, global crude oil and refined fuel prices have strengthened amid concerns over prolonged supply disruptions following stalled diplomatic efforts in the Middle East. Market sentiment was further affected by renewed threats from Iran regarding a possible closure of the Strait of Hormuz, a key global oil shipping route.
He noted that fears of declining global oil inventories have also supported higher fuel prices, especially as demand is expected to increase during the summer season in major markets.
Diesel prices, in particular, have been driven upward by the sharp rise in crude oil benchmarks and concerns that continued tensions in the region could disrupt feedstock supplies, leading to faster depletion of global inventories.
Gasoline prices, however, are expected to move in the opposite direction due to increased production from regional refineries and indications of weaker demand in several Asian markets.
Despite the anticipated rollback, Bellas said the regional gasoline supply outlook remains relatively tight, with inventories staying low as refiners focus more on producing middle distillates such as diesel.
He added that recent developments, including a ceasefire agreement between Israel and Lebanon, have eased some pressure on global oil prices. Expectations that diplomatic talks between the United States and Iran may continue could also help stabilize the market.
Bellas said movements in the Mean of Platts Singapore benchmark during Friday trading may further influence final pump price adjustments, potentially limiting the projected diesel increase while expanding the expected gasoline rollback.
ia/xf
