(UPDATE) LOCAL pump prices may ease slightly next week as Mean of Platts Singapore (MOPS) prices declined following a temporary ceasefire in the Middle East, an industry source said Thursday.
Based on the first three days of trading, including premium grades, diesel is expected to drop by P2.50 to P3.50 per liter, while gasoline could decline by up to P1 per liter.
MOPS is the pricing basis for refined petroleum products in Southeast Asia and is used by local oil firms in setting pump prices.
“MOPS prices eased significantly yesterday due to the ceasefire deal, which may translate to modest relief for pump prices next week,” the source said.
However, the source warned that prices could rebound if tensions escalate after recent Israeli airstrikes in Lebanon, which may threaten the fragile ceasefire.
“Any renewed conflict could derail the peace talks and the fragile ceasefire, pushing fuel prices higher again,” the source told The Manila Times.
Developments in the Middle East will remain a key factor in determining fuel price movements in the coming weeks.
Pump prices in the Philippines have surged dramatically since the US and Israel started their war on Iran on Feb. 28, effectively doubling as the market reacted to supply chain disruptions in the Strait of Hormuz.
Based on monitoring by the Department of Energy, gasoline went from a low of P49 a liter on Feb. 28 to a high of P120.80 a liter as of April 9, an increase of P71.80.
During the same period, diesel went from a low of P48 a liter to P164.70 a liter, or an increase of P116.70 per liter.
The expected decline next week is negligible in relation to the unprecedented increase in prices since the war started.
Meanwhile, President Ferdinand Marcos Jr. on Thursday announced the implementation of a nationwide service contracting program for public utility vehicles (PUVs) beginning April 15.
In a video message, Marcos said the program would be implemented by the Department of Transportation.
He said the program would benefit 50,000 PUVs, 1,000 operators, and 15 million passengers.
“Under this program, we will pay our operators and drivers from P40 to P100 per kilometer. This will be in addition to their earnings from fares,” Marcos said.
The president said the government would also implement a P10 per liter discount for PUVs, with a maximum of 150 liters per week, for three months.
A fare discount of at least 20 percent will also be implemented.
