Motorists burdened by a three-week streak of oil price hikes may finally see relief, with early trading estimates showing sharp rollbacks in petroleum products next week.
Initial price projections based on Mean of Platts Singapore (MOPS) trading, regional cargo premiums, and foreign exchange movements indicated that diesel prices could drop by ₱7.98 per liter. Gasoline is also expected to decline, with potential cuts estimated at ₱0.86 per liter.
Department of Energy Oil Industry Management Bureau (DOE-OIMB) Director Rino Abad said in a media briefing on Tuesday, Sept. 22, that increased crude oil loading at the start of the week helped ease market pressures.
Saudi Arabia has taken aggressive steps to boost crude availability, resulting in large oil shipments being transported back through the strategic Strait of Hormuz.
The movement of 14 million barrels through the channel represents a higher volume than exports through the Red Sea, offering much-needed stabilization to global supply chains, according to Abad.
Easing geopolitical tensions in key maritime transit points have further dampened price volatility. Market sentiment improved ahead of the United Nations General Assembly meeting, supported by a temporary pause in aggressive US military strikes against Houthi forces. The lull in military action has helped mitigate risks of further escalation in the Bab-el-Mandeb Strait and the broader Red Sea corridor.
The Department of Energy is scheduled to issue its official price determination on Sept. 28, with local oil companies traditionally implementing adjustments on Tuesday.
The prospective price cuts follow significant upward pressure on retail fuel prices. For the week of Sept. 22 to 28, the agency prescribed sharp price spikes across all major petroleum categories. Drivers faced price increases of ₱4.88 per liter for gasoline, ₱8.82 per liter for diesel, and ₱6.47 per liter for kerosene.
