OIL companies are expected to implement a big price rollback next week, resulting from global market reaction to recent developments in the Middle East and the United States midterm elections, local oil industry sources said on Friday.
Diesel prices, sources said, may drop by around P4.30 to P4.50 per liter, while gasoline prices may go down by about P12.50 to P13.50 per liter.
The estimates are based on the four-day trading of Mean of Platts, Singapore, the pricing basis of refined goods in Southeast Asia.
”Global oil prices declined this week as diplomatic efforts to end the US-Iran conflict eased renewed escalation concerns in the Middle East, despite lingering supply disruption worries as attacks on shipping in the Strait of Hormuz and Saudi energy infrastructure continue. Furthermore, the perception of a lower chance of escalation of tensions following sweeping victories by the Democratic Party in the recent midterm elections also helped prices go down,” an industry source said.
”Regional gasoline and diesel prices fell due to these developments, and because of expectations of higher supply availability following South Korea’s easing of diesel restrictions and the additional Chinese export quota. The stronger Philippine Peso against the US dollar also pushed prices lower this week as well,” the source added.
This week, diesel prices went down by P1 per liter, while gasoline prices increased by P3.50 per liter.
