DIESEL prices are expected to go up while gasoline prices are likely to go down next week as peace negotiations between the US and Iran have again stalled, local oil industry sources said on Friday.
They said that diesel prices will increase by around P4.00 to +4.50 per liter, while gasoline prices are expected to decline by around P1.00 to P1.50 per liter.
These estimates are based on 4-day trading of Mean of Platts (MOPS), Singapore, the pricing basis for refined goods in Southeast Asia.
“Crude oil and refined fuel product prices rallied this week on worries of stalled diplomacy and prolonged supply disruption following the suspension of negotiations on the peace deal, and renewed threats by Iran of full closure of the Strait of Hormuz. Hence, diesel and middle distillate prices rose as the global market worries about tighter supply as the peak summer demand of big oil consumers approaches,” a local oil industry source said.
“Meanwhile, gasoline prices weakened due to increased supply from regional refineries and signals of weak demand in some parts of Asia. Nevertheless, the supply outlook in Asia remains tight, and inventories remain relatively low as refineries prioritize middle distillate production,” the source added.
However, the source noted that the recent peace deal between Israel and Lebanon could mitigate the big increase in diesel prices.
“Early data indicate that MOPS prices are likely to go down in Friday’s trading and could potentially temper the possible increase in diesel and increase the rollback on gasoline,” the industry source said.
This week, diesel prices dropped by as much as P9.26 per liter, while gasoline prices declined by up to P4.76 per liter.
