Mixed movements in fuel prices seen next week

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

Citing Mean of Platts Singapore and foreign exchange averages over the past four days, an oil industry source said the estimated adjustments in fuel prices would be as follows:

• Diesel: Increase of P1.00 to P3.00 per liter
• Gasoline: Rollback of P1.00 per liter to a hike of P1.00 per liter

“Last week’s attacks on commercial vessels and the military strikes by the US and Iran over the weekend have exposed the fragile normalization of commercial traffic in the Strait of Hormuz,” the source said.

“While crude oil prices have softened because of easing supply concerns and optimism over the US-Iran peace talks, diesel and middle distillate prices have strengthened due to signals of tight fundamentals,” the source added.

The industry source likewise said that Asian gasoline prices are buoyed by firm demand and limited exports from China, although further upside is capped by signs of healthy supply in the region.

Fuel price adjustments are announced every Monday, to be implemented on the following day.

This week, effective June 30, oil companies hiked the prices of gasoline by P1.60 to P1.90 per liter, diesel by P0.80 to P0.85 per liter, and kerosene by P1.20 to P1.22 per liter.

The latest adjustments, marking the 26th price movement for the year, resulted in a total net increase of P45.02 per liter for gasoline, P31.56 per liter for diesel, and P28.72 per liter for kerosene. — RSJ, GMA News