Gasoline prices plunge, diesel costs climb

Gasoline consumers are in for a bigger break at the pumps this week, with prices falling by P4.30 per liter, but diesel users face another round of higher fuel expenses as prices climb by P2.60 per liter starting Tuesday.

The Department of Energy said Monday that the contrasting adjustments will translate to P215 in savings for motorists filling a 50-liter gasoline tank, while diesel users will pay an additional P130 for the same volume.

The diesel increase could also add pressure on transport operators, logistics companies and agricultural producers, potentially driving up operating costs despite the relief for gasoline consumers.

Kerosene prices, meanwhile, will decline by P1 per liter.

Based on the government’s prevailing retail prices for 13 to 19 October and the latest adjustments, gasoline prices in Metro Manila are projected to fall to as low as P74.90 per liter, while diesel could climb to as high as P102.77 per liter for premium variants.

Regular diesel prices are expected to range from P88.30 to P98.80 per liter, with a common retail price of P94 per liter.

For gasoline, RON 91 prices could drop to between P74.90 and P93.77 per liter, while RON 95 is projected to range from P75.70 to P98.50 per liter.

Higher-grade RON 97/100 gasoline could sell for P80.53 to P101.10 per liter.

The common retail price of RON 91 gasoline is expected to fall to P83.60 per liter, while RON 95 could decline to P84.60 per liter.

Kerosene prices are projected to range from P114 to P145.34 per liter.

Jetti Petroleum president Leo Bellas said over the weekend that persistently low global diesel inventories continue to push prices higher, although expectations of additional supply have prevented a steeper increase.

The prospect of additional diesel shipments from Russia and emergency stock releases by Group of Seven (G7) nations has helped temper price pressures.

However, Bellas noted that doubts remain over whether the US-Russia diesel agreement would deliver meaningful additional supplies to the market.

Gasoline, on the other hand, is benefiting from improving supply conditions across Asia.

Bellas said easing supply concerns and the return of refineries from scheduled maintenance have increased gasoline availability, pushing prices lower week-on-week.

Despite the gasoline rollback, the global oil market remains vulnerable to renewed price pressures from geopolitical tensions.

Bellas said shipping disruptions in the Strait of Hormuz and continued Houthi attacks on Saudi Arabia have heightened supply concerns, pushing international crude oil prices higher.

However, increased oil flows from Gulf producers and Russia, emergency stock releases, and the possible easing of US restrictions on sanctioned vessels have helped keep prices from climbing further.

The potential relaxation of restrictions could also lower freight costs and ease pressure on global oil shipments.

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