By El Amigo
MANILA — Motorists may get some relief at the pumps next week as diesel and gasoline prices are expected to decline following recent increases.
Industry sources are projecting a reduction of P7 to P7.50 per liter for diesel, while gasoline prices could fall by 50 centavos to P1 per liter.
The anticipated rollback is being attributed to movements in the international oil market, where crude prices eased amid renewed diplomatic efforts to end the conflict between the United States and Iran.
An industry source said oil prices initially weakened on expectations that diplomatic initiatives could lead to progress toward a settlement, while the resumption of Saudi Arabian shipments also helped ease concerns over supply.
However, the source cautioned that the downward trend could prove temporary.
Statements by Iran’s president during the United Nations General Assembly that Tehran would not yield to US pressure, while remaining open to diplomacy, have raised questions about the durability of the latest decline.
Supply concerns were also revived following a Houthi missile attack on Saudi Arabia, according to the source.
Asian diesel prices consequently moved lower during the week as crude supplies from the Middle East improved. The market, however, could face renewed upward pressure if supply tightens, particularly amid reports that the United States is considering restrictions on diesel exports.
Asian gasoline prices likewise declined alongside crude prices but remained elevated because of strong regional demand and expectations of reduced Chinese exports.
ia/xf
