Diesel rollback of up to P2/liter, gasoline hike P2.20/liter seen next week

Motorists should expect mixed movements in fuel prices to be implemented in the coming week.

Citing estimates based on four-day Mean of Platts Singapore trading and foreign exchange averages, an oil industry source said the following are the expected price adjustments:

• Diesel - P1.80 to P2.00 per liter (rollback)
• Gasoline - P2.00 to P2.20 per liter (increase)

“While oil is relatively weaker this week due to reserve releases and recovering Middle Eastern flows, persistent security threats amid tanker attacks and further escalation in the region have heightened supply concerns,” the industry source said.

“Furthermore, the shutting down of oil and gas production in the Gulf of Mexico due to an approaching hurricane also pushed prices as the potential curtailment of US refining capacity could exacerbate energy flows and supply,” the source added.

Oil companies announce official price adjustments every Monday, to be implemented on the following day.

This week, effective October 6, fuel firms increased the pump prices of gasoline by P1.90 to P1.93 per liter and kerosene by P3.30 per liter, while diesel was rolled back by P1.30 per liter.

The latest price adjustments, the 40th movement for this year, resulted in a total net increase of P71.59 per liter for gasoline, P64.83 per liter for diesel, and P61.99 per liter for kerosene.

“Asian diesel is also relatively lower this week on the G7’s planned reserve release, with the International Energy Agency supporting the prioritizing of diesel release where possible to ease tight supplies. However, continued strain on supply due to China’s fuel export suspension, lost of Russian and Middle Eastern refining output, and US Gulf of Mexico production shut-ins due to the approaching hurricane have capped further price loss,” the source said.

“Asian gasoline remains supported by firm regional demand amid low inventories and continuing supply tightness due to regional refinery shutdowns and China’s export ban,” the source added. —VAL, GMA News