MANILA, Philippines — Motorists may get relief from lower fuel prices next week, with diesel and gasoline pump prices seen to decline sharply as global oil prices eased amid developments in the Middle East war, local oil industry sources said.
The estimated diesel prices could go down by P6.50 to P7.50 per liter, while gasoline prices may decrease by P3.50 to P4.50 per liter.
The projected adjustments were based on the first four days of trading in Mean of Platts Singapore, the pricing benchmark used by local oil companies, and foreign exchange movements.
Oil prices came under pressure following improving market sentiment that the United States and Iran were moving closer to a peace arrangement despite remaining disagreements on key issues tied to the Middle East war.
Market sentiment was also lifted by expectations that the Strait of Hormuz, a major global oil shipping route, would remain open after reports that the US and Iran agreed to extend their ceasefire for another 60 days and allow maritime traffic to continue flowing through the passage.
Industry sources said easing supply tightness in the diesel market further weighed on prices as refiners were increasingly able to secure alternative crude supplies.
Asian gasoline prices, meanwhile, were expected to trade within a tight range but with a downside bias following recent developments in the Middle East.
The sources noted, however, that oil supply remained constrained and price volatility could persist as geopolitical risks continued to cloud the global market outlook.
