AFTER a series of sharp spikes, the prices of diesel and gasoline are expected to go down next week.
Sources in the local fuel sector project diesel to drop by P7 to P7.50 per liter and gasoline by 50 centavos and P1 per liter.
The sources attributed the price reduction to the global oil market reacting to the renewed efforts to negotiate an end to the war between the United States and Iran.
“Oil prices initially decreased on diplomacy hopes in the Iran war during this week’s UN General Assembly meeting, and due to recovering shipments from Saudi Arabia, eased supply concerns,” one insider said.
He added, however, that the price decline might be short-lived following remarks from Iran’s president during the General Assembly meeting that Iran would never surrender to US pressure but remains open to a diplomatic solution.
The recent Houthi missile attack on Saudi Arabia has also revived fears of supply disruptions and pushed prices higher,” the source said.
Because of these developments, Asian diesel prices traded lower this week as Middle Eastern crude supplies improved, but could become higher in the coming days due to supply constraints and with reports saying that the US is considering restricting its diesel exports.
The source also noted that Asian gasoline prices also slipped along with crude for the week but remained high because of big regional demand and potentially lower Chinese exports.
