Gasoline set for steeper rollback next week

Motorists can expect a larger gasoline price rollback next week, with industry estimates pointing to a reduction of up to P5.50 per liter as weakening demand and improving global fuel supply drive prices lower.

Based on full-week industry estimates, gasoline prices could decline by P5.30 to P5.50 per liter for the week of October 20 to 26, a steeper rollback than the earlier forecast of P4.00 to P4.20 per liter.

Diesel prices, meanwhile, could remain unchanged or rise by up to P0.20 per liter, an improvement from the earlier projected hike of P0.20 to P0.40 per liter.

The revised forecasts are based on the 12 to 16 October average trading prices under the Mean of Platts Singapore benchmark and foreign exchange movements.

If implemented, the gasoline rollback would translate to savings of P212 to P220 for a 40-liter fill-up, offering motorists some relief after weeks of fluctuating pump prices.

Jetti Petroleum Inc. President Leo Bellas attributed the sharper gasoline price decline to improving supply conditions in Asia and weakening demand, particularly in the United States.

“Gasoline further eased due to softening demand and improving product availability in Asia. The larger-than-expected US gasoline inventory, indicating weaker demand, further added bearish pressure on prices,” Bellas said on Saturday.

Meanwhile, diesel prices are showing signs of stabilizing as prospects of additional global supply ease concerns over tight inventories.

“The planned emergency stock releases by IEA member countries, US-Russia diesel agreement, and China’s re-authorization of refined product exports in October have collectively provided near-term relief to diesel,” Bellas said.

Based on the latest projections, gasoline prices in Metro Manila could range from P74.66 to P102.16 per liter across different grades, while regular diesel could range from P79.99 to P96.59 per liter.

Despite the anticipated relief for motorists, Bellas said international crude oil prices remain elevated as geopolitical tensions in the Middle East threaten to disrupt global supplies.

“While products eased this week, oil prices rose, with Brent touching $110 a barrel for the first time since May, due to worries that escalating tensions in the Middle East could further tighten supplies,” he said.