Rollback in Prices of Fuel Products Seen Next Week

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Rollback in Prices of Fuel Products Seen Next Week

The global oil market has experienced significant shifts, leading to an anticipated rollback in fuel prices next week. According to industry sources, gasoline prices are expected to either remain unchanged or decrease by around P0.30 per liter, while diesel prices may drop by approximately P0.20 to P0.50 per liter. Kerosene prices are estimated to be reduced by P0.10 to P0.25 per liter.

These projected price movements are based on the 4-day trading of Mean of Platts Singapore (MOPS), the pricing benchmark for refined goods in Southeast Asia. The expected rollback is largely attributed to global oil-related developments, particularly Saudi Arabia's decision to increase the price of its crude for Asian buyers, capitalizing on growing demand, especially from China.

Key factors driving these price movements include Saudi Aramco's announcement to raise prices for March delivery amid rising demand from China and India due to US sanctions disrupting Russian supply, OPEC production declining in January amid lower output from Iran and Nigeria, and the market digesting US President Trump's planned imposition of tariffs on Canada, Mexico, and China, said Rodela Romero, Director of the Department of Energy's Oil Industry Management Bureau (DOE-OIMB).

Jetti Petroleum president Leo Bellas also shared his insights, stating, Based on this week's 4-day trading of MOPS, we expect fuel prices to mostly roll back next week. The primary drivers of these price movements are US President Trump agreeing to hold off imposing steep tariffs on Mexico and Canada, the sharp rise in the prices of Saudi Arabian crude for Asian buyers as US sanctions disrupt Russian supply, weak demand concerns in the US following a larger-than-expected build in crude oil and gasoline stockpiles, various worries that the renewed China-US trade war could slow down economic growth and dampen demand for oil further pressured prices, and concerns of a possible sudden disruption of supply from Iran should the US sanctions be reimposed.

On Tuesday, local oil companies implemented mixed price adjustments, with diesel prices decreasing by P1.15 per liter and gasoline prices increasing by P0.70 per liter. Kerosene prices also dropped by P0.90 per liter.

Separately, the highly anticipated fuel subsidy program for public utility vehicle (PUV) drivers and operators has officially begun, with plans to complete the full distribution by the second quarter of 2025. Transportation Undersecretary for Road Transport and Infrastructure Jesus Ferdinand Ortega confirmed this development on Friday, emphasizing that the program aims to alleviate the financial burden on transport workers amid rising fuel costs.

The fuel assistance will not only target PUV modes overseen by the Land Transportation Franchising and Regulatory Board (LTFRB) but will also extend to tricycle drivers and delivery riders. The expanded scope of the initiative is intended to provide broader relief to various sectors of the transport workforce.

About the Author

Franco Jose C. Baroña is a seasoned journalist with a passion for keeping readers informed about the latest developments in the energy sector.

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