Small diesel price drop expected—what it means for your wallet

National

DIESEL prices may get a small breather next week as hopes of a renewed Ukraine-Russia ceasefire ease global supply pressures, offering a potential relief to motorists and businesses alike.

Industry analysts predict diesel could drop by P0.10 to P0.30 per liter, while kerosene may fall by around P0.65 per liter. Gasoline prices, in contrast, could either rise or decline by P0.10 per liter. The kerosene estimate, however, does not account for oil companies’ operating costs and other premiums.

These forecasts are based on trading activity in the Mean of Platts Singapore (MOPS), a key benchmark for petroleum products, over the past four days. Official price adjustments will be announced on Monday and implemented the following day.

“Oil prices eased as investors shifted focus back to Russia-Ukraine peace talks,” said Department of Energy assistant director Rodela Romero in a Philstar report.

She noted that the resumption of production at Iraq’s West Qurna 2 oilfield, operated by Lukoil and one of the world’s largest, has also contributed to downward pressure on prices.

Despite the easing of international benchmark prices this week, domestic adjustments may be limited. Jetti Petroleum president Leo Bellas explained that the weakening of the Philippine peso against the US dollar has reduced the potential rollback at local pumps, while freight and premium components, though slightly tapered, remain elevated. Last Tuesday, the peso hit a record low of 59.22 to the dollar.

For context, last Tuesday saw oil firms increase gasoline prices by P1.20 per liter, while diesel and kerosene prices remained unchanged.(MyTVCebu)