Fuel prices poised for up to P5-per-liter rollback next week

National

EASING tensions in the global oil market could translate into lower pump prices next week, with gasoline and diesel seen dropping by as much as P5 per liter.

After four trading days in the Mean of Platts Singapore (MOPS), industry estimates point to a rollback of P4.50 to P5 per liter for gasoline and diesel prices on Aug. 11.

The projected adjustment could still change, however, as one trading day remains before the final price movement is determined.

Jetti Petroleum president Leo Bellas said that oil prices declined this week as renewed optimism over a possible breakthrough in US-Iran talks eased market concerns and reduced the risk premium in the oil market.

The stronger peso against the US dollar this week also added downward pressure on domestic fuel prices, Bellas said.

Despite the retreat, oil prices remain supported by strong demand and tighter supply conditions. Continued disruptions to Middle East exports have limited crude availability for Asian refiners, while conflicting political statements from the US and Iran are keeping the market volatile and raising the risk of further price increases, Bellas said.

The Philippines primarily imports refined petroleum products from other Asian countries. Refineries in these markets, however, also rely on crude oil sourced from various producing nations, including those in the Middle East.

The potential rollback comes after the Department of Energy announced another round of price reductions this week. Diesel prices were cut by P0.60 per liter, gasoline by P0.73 per liter and kerosene by P2.09 per liter.

While the reductions were modest compared with previous price increases, Energy Secretary Sharon Garin said the continued decline in fuel prices was a positive development.

Garin also cautioned that the market remains vulnerable to geopolitical developments, saying the country cannot afford to become complacent until a more permanent agreement is reached among the US, Iran and Israel.

“Until we see a more permanent agreement among the parties concerned, specifically the US, Iran and Israel, we cannot be complacent yet, and we still have to remain vigilant,” Garin said in a Philstar report.(MyTVCebu)