DIESEL prices are expected to drop while gasoline prices are estimated to increase next week, as the global market reacts to the volatile developments in the Middle East, local oil industry sources said on Friday.
They said that diesel prices would roll back by about P3.50 to P4.00 per liter, while gasoline prices are expected to increase by about P0.50 to P1.00 per liter.
These estimates are based on 4-day trading of Mean of Platts Singapore, the pricing basis for refined goods in Southeast Asia.
“Oil prices initially increased during the week after the US military planned strikes on Iranian targets in response to the shooting down of a US Apache helicopter, and because of worries that supplies would be severely disrupted after Iran announced the full closure of the Strait of Hormuz. Prices, however, eased down in the later days because of expectations that a peace deal is imminent after US President Trump canceled the planned strikes,” a local oil industry source said.
“Due mostly to these developments, diesel and other middle distillate prices declined as northeast Asian producers managed to secure alternative crude supplies. Meanwhile, gasoline prices remained elevated due to relatively low inventories globally. Note that Asian gasoline supply is expected to tighten further because of this development while demand remains elevated,” the source added.
This week, diesel prices dropped by about P4.85-P5.77 per liter, and gasoline prices went up by about P0.30 per liter.
