Bad news for gasoline users, relief for diesel motorists next week

National

GASOLINE users could feel the pinch next week as prices are projected to climb by up to P3.20 per liter, even as diesel motorists stand to benefit from a possible rollback by P0.40 to P0.60 per liter.

The projections reflect four days of trading in the Mean of Platts Singapore (MOPS), the regional benchmark for refined petroleum products in the Asia-Pacific, as well as movements in the foreign exchange rate.

Jetti Petroleum president Leo Bellas said crude oil prices remained elevated amid concerns over potential supply disruptions in the Middle East, as regional attacks continued and fears grew over a possible US strike on Iran following the country’s midterm elections.

“Diesel and gasoline closely followed the movement of crude oil, which continues to be supported by concerns about energy supply disruptions in the Middle East as regional attacks continue and worries the US could strike Iran after next week’s US midterm elections,” he said in a Philstar report.

However, prospects of a diplomatic breakthrough to end the eight-month-long conflict helped temper further increases in oil prices, Bellas said.

He also pointed to improving fuel supply prospects as a factor behind the easing of diesel and gasoline prices.

China issued a fourth batch of export quotas covering gasoline, diesel and jet fuel, while South Korea eased restrictions on diesel exports, providing additional supply to markets facing tight availability.

Meanwhile, Russia’s diesel and gasoline exports reached a peak amid a pause in Ukrainian attacks on refineries, further improving supply prospects.

These developments weighed on diesel prices, reversing their earlier gains, Bellas said.

The projected adjustments remain preliminary, as the final pump price changes will depend on the outcome of the remaining trading day for the week. The estimates also exclude week-on-week movements in freight costs.

Amid the continuing national energy emergency, the Department of Energy has directed oil companies to comply with its prescribed maximum price increases.(MyTVCebu)