MANILA (September 28) – Motorists may see mixed movements in pump prices next week, with gasoline likely to go down and diesel poised for another increase, an oil industry official said Friday.
Jetti Petroleum President Leo Bellas projected a rollback of PHP0.50 to PHP0.70 per liter for gasoline, citing ample supply in Asia as inventories continue to build up following China’s release of its third batch of clean export quotas. The end of the summer driving season has also added downward pressure on gasoline prices.
In contrast, diesel prices are expected to climb by PHP0.30 to PHP0.50 per liter. Bellas explained that the weaker peso, which closed at the 58-level against the US dollar on Thursday, contributed to the larger potential price hike for diesel while reducing the extent of the gasoline rollback.
He also pointed to a rebound in global diesel benchmarks in the past two days amid concerns of tightening supply. Ukraine’s intensified drone attacks on Russian energy facilities, along with renewed Western efforts to restrict Russian oil and gas flows, have fueled market volatility.
Russia’s announcement of a partial ban on diesel exports and the extension of its gasoline export ban further support expectations of sustained price increases.
“Diesel is also buoyed by stabilizing industrial activity in Europe and rising demand during the US harvest season. Fears of supply disruptions that could affect flows in Asia have added to the upward pressure,” Bellas said.
