The Department of Energy (DOE) on Friday confirmed a potential oil price rollback of more than P1 per liter next week, attributing it to a softening of world oil prices.
Rino Abad, director of the DOE’s Oil Industry Management Bureau, said that based on the first four trading days of the week, gasoline prices could see a reduction of over P1 per liter.
Diesel prices may drop by around P0.50 per liter, and kerosene by around P0.80 per liter.
Abad noted that this forecast is subject to adjustment after Friday’s trading results.
He cited several reasons for the decline in the world oil prices such as the sustained ceasefire between Israel and Iran, which eased tensions on supply of oil from the Persian gulf.
He said the high expectation that the Organization of the Petroleum Exporting Countries will push through the release of 411,000 barrels of oil per day for July thus increasing supply on the market; pushed prices downwards.
Another factor is the possible reimposition of global tariff by the United States by July 10, he said.
The 90-day suspension made by US will expire on July 9.
Jetti Petroleum has also predicted a rollback, estimating diesel prices to go down by P0.20 to P0.40 per liter and gasoline by P0.80 to P1 per liter.
“Prices fell this week as the risk premium built into crude oil and refined fuel products gradually unwinds due to easing of tensions in the Middle East,” said Leo Bellas, president of Jetti Petroleum.
“The prospect of additional supply from another OPEC+ output increase, and worries about the impact on the economy and fuel demand driven by U.S. tariff uncertainty have also weighed on prices.”
Bellas said price gains stemming from concerns about Iran’s nuclear program evolving into armed conflict were offset by demand worries in the U.S. following an unexpected build-up in crude oil and gasoline inventories.
This anticipated rollback next week would mark the second consecutive price reduction, following a truce between Iran and Iraq.
On July 1, oil companies cut gasoline prices by P1.40 per liter, diesel by P1.80 per liter, and kerosene by P2.20 per liter.
Additionally, the price of liquefied petroleum gas (LPG) was reduced by P1 per kilogram, or P11 per 11-kilogram tank, effective July 1, reflecting lower contract prices in the world market.