Pump price rollback seen next week

MANILA, Philippines — September is set to start on a good note for motorists, with diesel prices expected to drop by P3.50 to P4 per liter next week.

Gasoline prices are also seen rolling back, although by a much smaller P0.25 to P0.75 per liter.

The projections are based on the four-day average of Mean of Platts Singapore prices and movements in foreign exchange rates.

The final adjustments, which are expected to be announced on Monday, will still depend on the outcome of the last trading day.

Jetti Petroleum president Leo Bellas said prices fell this week amid signs that talks could resume to end the war and reopen the Strait of Hormuz, a key trade route for oil and gas shipments.

“Iran said it had resumed talks with Oman, although the physical supply picture reflects a still-constrained market and supply disruption risks remain,” Bellas said yesterday.

Also weighing on prices were rising regional inventories as supplies from China and India continued to increase.

However, global oil prices recently rebounded after reports that the United States was no longer interested in returning to the terms of its previous ceasefire deal with Iran.

“The potential rollback on local pump prices next week could be capped, with the risk of pushing to the lower limits of the initial estimated range,” Bellas noted.

Last Tuesday, gasoline, diesel and kerosene prices climbed by up to P1.08, P2.31 and P0.95 per liter, respectively.

The Department of Energy expects fuel price adjustments, whether rollbacks or hikes, to remain at single-digit levels in the weeks ahead.