As much as P5/liter cut in pump prices seen

MANILA, Philippines — Fresh hopes for a US-Iran deal could bring relief to motorists next week, with pump prices expected to go down by as much as P5 per liter.

After four trading days in the Mean of Platts Singapore, industry estimates point to a rollback of P4.50 to P5 per liter for gasoline and diesel prices on Aug. 11.

With one trading day remaining, the final adjustment could still change.

Jetti Petroleum president Leo Bellas told reporters yesterday that oil prices pulled back this week as renewed optimism over a possible breakthrough in US-Iran talks helped ease market concerns.

The development brought down the risk premium in the oil market, although concerns over ongoing uncertainty and Red Sea shipping disruptions remain.

“The stronger peso this week against the US dollar helped put more downward pressure on domestic prices,” Bellas said.

Still, oil prices remain supported by strong demand and tighter supply, with ongoing disruptions to Middle East exports limiting crude availability for Asian refiners.

“Continued supply disruptions and conflicting political statements from the US and Iran are keeping prices volatile, with increasing upside risk,” Bellas said.

The Philippines primarily imports refined petroleum products from other Asian countries. However, refineries in these markets also rely on crude oil supplies from various producing countries, including those in the Middle East.

This week, the Department of Energy announced minimum price cuts of P0.60, P0.73 and P2.09 per liter for diesel, gasoline and kerosene, respectively.

While the rollback was modest compared with previous price hikes, Energy Secretary Sharon Garin said the positive takeaway was that fuel prices were still moving downward.

“Until we see a more permanent agreement among the parties concerned, specifically the US, Iran and Israel, we cannot be complacent yet, and we still have to remain vigilant,” Garin said.

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