Gasoline prices could plunge by P13 next week in massive rollback

National

A DOUBLE-digit price rollback could be in the cards for gasoline next week.

Based on four days of trading in the Mean of Platts Singapore (MOPS), the regional benchmark for refined petroleum products, industry estimates point to a possible rollback of P12.50 to P13.50 per liter for gasoline and P4.30 to P4.50 for diesel.

If realized, the adjustment would mark the first double-digit reduction in gasoline prices, according to Jetti Petroleum president Leo Bellas.

The projected cuts follow a decline in global crude prices as concerns over a further escalation of the Iran conflict eased after the US midterm elections, in which Democrats gained control of both chambers of Congress following losses by President Donald Trump’s Republican Party.

Bellas attributed the decline in fuel prices to lower crude costs and improved supply prospects, particularly after South Korea eased its diesel restrictions and China approved an additional export quota. Expectations of adequate gasoline supplies from China also weighed on prices despite firm regional demand.

“Gasoline and diesel likewise fell due to lower crude prices and expectations of higher supply availability following South Korea’s easing of diesel restrictions and the additional Chinese export quota,” Bellas said in a Philstar report.

However, risks of supply disruptions persist amid continued attacks on commercial shipping in the strategic Strait of Hormuz and Saudi energy infrastructure.

The projected adjustments remain subject to the final trading session, which will determine the actual rollback to be announced on Monday and implemented the following day.

With the country under a national energy emergency, the Department of Energy is authorized to set the maximum allowable fuel price increases and minimum rollbacks that oil companies may implement.

Meanwhile, Philippine Ambassador to the United States Jose Manuel Romualdez said the US midterm election results are unlikely to bring significant changes to bilateral relations, citing continued bipartisan support for the Philippines in Congress.

He also expressed confidence that policies initiated by the current and previous US administrations would remain in place.(MyTVCebu)