MANILA — Motorists can expect another round of modest fuel price reductions beginning June 30, as easing concerns over global crude oil supply continue to soften international oil prices.
Industry estimates released Friday indicate that diesel prices may decline by 70 centavos to P1.20 per liter, while gasoline prices could be reduced by 50 centavos to P1.50 per liter.
According to an industry source, the decline in fuel prices reflects improving supply conditions in the global oil market despite ongoing geopolitical developments in the Middle East.
The source said crude prices have eased as optimism surrounding the interim peace efforts between the United States and Iran has tempered fears of major supply disruptions. Oil shipments passing through the Strait of Hormuz have also gradually resumed, while Gulf oil producers have increased production, helping restore supplies to the market.
Another factor contributing to lower prices is the sanctions waiver that allows Iranian crude oil and petroleum products to re-enter global markets, increasing available supply and easing pressure on prices.
The projected adjustments were based on the first four trading days of the Mean of Platts Singapore (MOPS) benchmark, together with recent foreign exchange movements.
Industry observers, however, noted that the estimates remain subject to change pending the final trading session for the week before oil companies announce their official price adjustments.
elamigo/xf
