Pump price rollback: P13 for gas, P4 for diesel

MANILA, Philippines — A major rollback in pump prices is expected next week as fears of an escalation in the Iran war ease following losses by US President Donald Trump’s Republican party in the midterm elections.

Industry estimates suggest possible price cuts of P12.50 to P13.50 per liter for gasoline and P4.30 to P4.50 for diesel, based on the four-day trading in the regional benchmark Mean of Platts Singapore.

If the projections hold, it would be the first time for gasoline prices to record a double-digit rollback, according to Jetti Petroleum president Leo Bellas.

The expected steep price reductions come as markets react to the US midterm elections, in which Democrats gained control of both chambers of Congress.

However, concerns over oil supply disruptions persist amid continued attacks on shipping in the strategic Strait of Hormuz and Saudi energy infrastructure, he said.

“Gasoline and diesel likewise fell due to lower crude prices and expectations of higher supply availability following South Korea’s easing of diesel restrictions and the additional Chinese export quota,” Bellas said.

For gasoline, in particular, a “healthy” supply outlook from China weighed on prices despite firm regional demand, he added.

The local market was still awaiting the outcome of the final trading day, which will determine the extent of the price adjustments to be announced on Monday and implemented the following day.

With the country under a national energy emergency, the Department of Energy is empowered to set the maximum price hikes and minimum rollbacks that oil companies may implement.

US-Philippine relations unchanged

Meanwhile, Philippine Ambassador to the United States Jose Manuel Romualdez said yesterday there will not be any significant change in the Philippines’ relationship with the US despite the results of the recent elections.

“First of all, we have a very strong bipartisan support in the US Congress. We have good friends from both sides of the aisle,” Romualdez told “Storycon” on One News.

“I think the support that we will be getting and the policy that has been initiated by the present administration and also the previous administration will continue,” he added. — Janvic Mateo