Diesel price rollback, gas hike seen next week

MANILA, Philippines — Motorists face another price hike for gasoline next week, while the rollback in diesel and kerosene is expected to bring much-needed relief.

After four trading days in the international oil market, the Department of Energy (DOE) indicated a potential increase of P1.60 to P1.70 per liter for gasoline prices.
Diesel and kerosene prices, on the other hand, could go down by P9 and P12 per liter, respectively.

“There’s some upward pressure on gasoline, probably because of supply and demand. Many are buying gasoline,” DOE director Rino Abad said in a radio interview yesterday.

“For diesel, prices are returning to normal, to a market-based price. The speculations have faded because of the good news about the peace talks,” he added.

Global markets continued to be optimistic about a potential peace deal between the United States and Iran despite renewed escalations.

The DOE estimates, which could still rise or fall with one trading day remaining, were based on the Mean of Platts Singapore (MOPS), a key pricing benchmark for refined petroleum products across the Asia-Pacific market.

Final price adjustments will be announced on Monday and will take effect the following day. 

“The lower diesel MOPS price this week is further weighed down by the continued easing of the cargo premium,” an industry source said, adding that a looming supply tightness pushed gasoline prices higher.

If the estimated adjustments push through next week, gasoline would once again be more expensive than diesel, just like it used to be before the Middle East war erupted.

Currently, gasoline is sold for as low as P73.21 per liter in Metro Manila, while diesel ranges from P79.62 to P102.16 per liter, according to DOE data.