MANILA – Demand concerns and impact of geopolitical issues overseas are seen to result in a decline in the price of diesel and a slight uptick for gasoline.
In a report Friday, Jetti Petroleum President Leo Bellas forecast diesel prices to be reduced between PHP0.60 to PHP0.80 per liter, while gasoline prices are projected to increase up to PHP0.20 per liter.
“Oil prices fell this week due to demand concerns resulting from the US-China trade tensions, and worries of a looming supply glut in 2026," he said.
Citing price developments based on the benchmark for oil in Asia, the Mean of Platts Singapore (MOPS), Bellas said the price of diesel has softened week-on-week.
While gasoline price has dropped, he noted that a decrease in regional gasoline inventories in Asia, coupled with firm demand from Indonesia as well as an opportunity to fill the supply gaps in Middle East, Africa and Europe on the back of refinery maintenances, has put a floor on price benchmarks.
“The MOPS assessment on Friday can still influence this week’s average and affect the movement of domestic prices next week,” he said.
He added that further volatility this week is expected due to the possibility that India would stop Russian oil imports which could increase demand for supplies from other sources, the decreasing availability of fuel products and crude oil from Russia.
“The geopolitical tensions between Russia, the US and Ukraine are also bringing further uncertainty over global energy supplies,” he added. (PNA)