Big fuel price rollback ahead as diesel may fall up to P9.50 per liter

National

DIESEL prices could fall by as much as P9.50 per liter next week, as early trading data signals a broad rollback in fuel costs across both diesel and gasoline products.

According to an Inquirer report, based on trading activity in the first four days of the week, diesel prices are projected to go down by about P7.50 to P9.50 per liter, while gasoline may see a reduction of around P3 to P5 per liter.

Market sentiment was influenced by developments in global geopolitics, particularly an interim agreement between the United States and Iran. Industry sources said oil traders have begun factoring in the possible reopening of the Strait of Hormuz and the return of additional crude supplies from the Middle East following the reported peace deal. The agreement provides a 60-day window for both sides to work toward a broader accord.

Additional downward pressure came from improved supply availability in the global market. Replacement crude from other regions helped Asian refiners sustain operations and maintain output of refined petroleum products despite earlier disruptions linked to reduced Middle Eastern shipments.

Diesel prices were especially affected as alternative supply sources eased immediate tightness in the market. Gasoline likewise softened as refineries resumed operations after scheduled maintenance shutdowns, while some Asian refiners turned to non-Middle Eastern crude to bridge supply gaps.

A stronger Philippine peso against the US dollar also contributed to lower landed fuel costs during the week, adding further weight to the expected rollback.

Industry participants cautioned, however, that final price adjustments will still depend on trading activity in the remaining days before oil companies finalize and announce next week’s pump price movements. If projections hold, fuel firms may implement the adjustment as early as Tuesday, June 23.(MyTVCebu)