Huge relief as large fuel price rollback likely next week

National

SIGNIFICANT reductions in fuel prices could greet motorists next week, offering relief after a series of recent pump price increases, amid improving market sentiment over a potential peace deal between the United States and Iran.

According to a Philstar report, a local industry source estimated that diesel prices could decline by P6.50 to P7.50 per liter, while gasoline prices may decrease by P3.50 to P4.50 per liter.

The projected rollback was based on the four-day average movement of the Mean of Platts Singapore, the benchmark widely used for pricing refined petroleum products across Asia-Pacific markets.

Final adjustments, however, may still change, with one trading day remaining before oil companies set next week’s pump prices.

“Crude and refined fuel product prices are pressured by improving sentiments that the US and Iran are moving closer toward a peace deal,” the source said in the article.

Diesel prices are also expected to draw support from improving supply conditions, while gasoline prices in Asia are likely to remain within a tight trading range.

The anticipated rollback comes after fuel prices increased on Tuesday. According to the Department of Energy (DOE), gasoline prices went up by as much as P1.60 per liter, while diesel prices rose by up to P1.96 per liter.

Latest DOE data likewise showed that the country’s average fuel inventory stood at 44.82 days as of May 22.(MyTVCebu)