MANILA (June 21) – Domestic fuel prices are projected to drop by as much as ₱9.50 per liter next week as global oil prices continue to decline, driven by expectations of the full reopening of the Strait of Hormuz.
Oil shipments through the strait were previously disrupted due to the Middle East crisis that began in late February, causing global prices to surge. However, with the anticipated reopening following an interim peace agreement between the United States and Iran, prices are now easing.
Diesel prices are expected to decrease by ₱7.50 to ₱9.50 per liter, while gasoline prices may drop by ₱3 to ₱5 per liter.
Jetti Petroleum President Leo Bellas said global oil prices declined as markets began factoring in the reopening of the Strait of Hormuz and the return of Middle Eastern crude supply. He added that the interim agreement gives both countries 60 days to finalize a long-term deal.
Bellas also noted that the availability of alternative crude supplies and the resumption of refinery operations helped stabilize supply, easing pressure on fuel prices. Despite strong demand and low inventories, these developments contributed to the downward trend.
Additionally, the strengthening of the peso against the US dollar further supported the reduction in domestic fuel prices.
