Consumers can expect oil prices to roll back by as much as P1.50 per liter next week due to the softening of global oil prices.
Jetti Petroleum president Leo Bellas said diesel prices are forecasted to drop by P1.30 to P1.50 per liter, while gasoline is expected to fall by P0.40 to P0.60 per liter. These estimates are based on the movement of the Mean of Platts Singapore—the benchmark for oil importers—and foreign exchange rates during the first four days of this week, compared to the full average of last week.
Bellas attributed the rollback to additional production increases by the Organization of the Petroleum Exporting Countries and its allies, along with continued tariff uncertainties.
“Recent developments that raised expectations for a diplomatic end to the war in Ukraine have also caused oil prices to weaken further,” he noted. “Putting pressure on Asian diesel and gasoline prices is the increasing supply from China as Chinese refiners ramp up production.”
However, the price declines were limited by a larger-than-expected drawdown in US crude oil stockpiles, signaling healthy demand in the world’s biggest economy, higher Saudi prices for Asia, and robust Chinese crude imports in July. Bellas added, “Geopolitical risks and evolving US trade policy continue to add uncertainty and cloud the broader demand picture.”
The Department of Energy (DOE) echoed Jetti Petroleum’s outlook for price reductions. DOE estimates a rollback of around P0.25 per liter for gasoline, P1.25 per liter for diesel, and P1.20 per liter for kerosene. “Final adjustments will be determined after Friday’s trading,” said Rodela Romero, DOE director for the Oil Industry Management Bureau.
Oil companies implemented a major price hike on August 5, raising gasoline by P1.90 per liter, diesel by P1.20 per liter, and kerosene by P1.00 per liter. This increase was driven by a sharper-than-expected decline in US gasoline stocks, reinforcing the expectation of strong demand during the peak summer driving season, as well as the depreciation of the peso.
The potential rollback now signals some relief for consumers amid fluctuating global and domestic factors affecting fuel prices.
