Filipino motorists could soon experience reduced fuel prices, with estimates suggesting a decline of P7.50 to P9.50 per liter for diesel and P3 to P5 per liter for gasoline, effective June 23.
Factors Driving the Price Decrease
Reinforcing the easing of diesel and middle distillate prices is the availability of replacement flows that helped reduce immediate market tightness.
Leo Bellas, President of Jetti Petroleum
- Diesel prices projected to decrease by P7.50 to P9.50 per liter.
- Gasoline prices expected to drop by P3 to P5 per liter.
- Strengthening peso contributes to lower import costs.
These projections stem from the recent trends in global oil markets, primarily influenced by a potential agreement between the United States and Iran. The arrangement could stabilize oil supplies by addressing tensions related to the Strait of Hormuz.
As Asian refiners secure alternative crude sources outside the Middle East, this has alleviated market tightness and enabled increased refined product output. Additionally, planned maintenance shutdowns at refineries have ended, allowing for greater product availability.
Market analysts note that despite strong fuel demand and low inventories, the influx of supply has helped mitigate price hikes. The peso's strengthening against the U.S. dollar has further aided in reducing costs for imported fuel.
A Department of Energy official indicated that if negotiations between the U.S. and Iran progress positively, local fuel prices could return to pre-conflict levels within six months to a year.