DIESEL prices are likely to drop, while gasoline is expected to spike next week, due mostly to the G7’s planned diesel reserve release and China’s fuel export suspension, local oil industry sources said on Friday.
They said diesel prices will roll back by P1.80 to P2 per liter, while gasoline prices will increase by about P2.00 and P2.20 per liter.
These estimates are based on the four-day Mean of Platts Singapore, the pricing basis for refined goods in Southeast Asia.
This will be the second consecutive week of a diesel price rollback, while gasoline prices increased.
“Diesel prices are estimated to roll back next week due to the market focusing on the announcement that G7 is planning to release 100 million barrels of reserves,” DOE director Rino Abad said in an online message.
He said gasoline prices are expected to remain elevated, primarily due to continued strong demand on top of limited global supply.
Meanwhile, a local oil industry source also cited the same reasons for the diesel price drop next week — the G7 announcement — but gasoline prices are expected to go up because of firm regional demand amid low inventories and continuing supply tightness due to regional refinery shutdowns and China’s export ban.
But the source noted that despite oil prices being relatively weaker this week because of the G7 reserve releases and recovering Middle Eastern oil supply, continued tanker attacks and further escalation in the region have heightened supply concerns again and could make prices volatile in the coming days.
“Furthermore, the shutting down of oil and gas production in the Gulf of Mexico due to an approaching hurricane could also push prices further upwards in the coming days as well,” the source continued.
Recently, the G7 announced that 100 million barrels of oil and diesel will be released to ease supply concerns that have driven prices to skyrocket.
It includes a “substantial release” of diesel within 20 days, with talks of possible “additional diesel” releases if needed.
This week, based on available price adjustment bulletins, diesel prices declined by up to P1.30 per liter, while gasoline prices jumped by up to P1.93 per liter.
