Big-time fuel price rollback seen next week

Motorists can expect a sigh of relief as pump prices are expected to go down big-time in the coming week.

Citing Mean of Platts Singapore (MOPS) trading and foreign exchange averages in the past four days, an oil industry source said the estimated reductions next week are as follows:

• Diesel - P4.50 to P5.00 per liter
• Gasoline - P4.50 to P5.00 per liter

“Oil price retreated as renewed hopes of a diplomatic breakthrough to the US-Iran conflict eased the geopolitical risk premium, despite the lingering uncertainty and persistent risks to Red Sea shipping,” the source said.

“Fuel products declined in line with crude, with Asian diesel and gasoline falling sharply as easing geopolitical risks reduced the recent supply premium,” the source added.

Fuel firms announce price adjustments every Monday, to be implemented on the following day.

This week, effective August 4, oil companies slashed the price of gasoline by P0.73 per liter, diesel by P0.60 per liter, and kerosene by P2.09 per liter.

“The stronger peso this week against the US dollar helped put more downward pressure on domestic prices,” the industry source said. —VAL, GMA News