(DC file photo)
MANILA, Philippines – Motorists may see another round of fuel price reductions next week as easing tensions between the United States and Iran continue to put downward pressure on global oil prices.
Jetti Petroleum President Leo Bellas said Friday that diesel prices could decline by Php 4 to Php 5 per liter, while gasoline prices may drop by Php 3 to Php 4 per liter.
The estimates were based on international oil prices and foreign exchange movements as of Thursday, November 12, but excluded weekly changes in ocean freight and insurance costs.
“Diplomatic headlines continue to push oil prices lower this week despite lingering supply risks,” Bellas said.
However, he warned that concerns over possible supply disruptions could limit further price declines.
“However, growing supply disruption worries as attacks on Saudi energy infrastructure and shipping through the Strait of Hormuz escalated have caused prices to rebound recently,” he added.
The projected rollback would extend the substantial fuel price reductions implemented this week.
According to the Department of Energy (DOE), fuel price adjustments for November 10 to 16 included a Php 16.80-per-liter reduction for gasoline, Php 4.10 per liter for diesel and Php 3.70 per liter for kerosene.
The latest downward trend was attributed largely to optimism over a possible peace agreement between Washington and Tehran, which could ease concerns about global oil supplies.
Oil prices had surged following the outbreak of hostilities between the United States and Iran in February, with military developments and threats to major energy shipping routes contributing to market volatility.
Despite the improving diplomatic outlook, analysts and industry officials continue to monitor developments in the Middle East, particularly threats to Saudi energy facilities and shipping operations through the Strait of Hormuz.
Final fuel price adjustments for next week will depend on international market movements and other pricing factors before oil companies announce their official rates.
