Diesel price rollback seen next week

MANILA, Philippines — A slight rollback in diesel prices is expected next week amid renewed Ukraine-Russia ceasefire hopes that eased global supply concerns.

Oil industry experts indicated a potential per-liter price cut of P0.10 to P0.30 for diesel and around P0.65 for kerosene, while gas may either climb or go down by P0.10 per liter.

The kerosene estimate, however, still excludes oil companies’ operating costs and other premiums.

The projections reflect the trading results in the Mean of Platts Singapore (MOPS), a key pricing benchmark for petroleum products, over the past four days.

Final price adjustments will be announced on Monday and will take effect the following day.

“Oil prices eased as investors shifted focus back to Russia-Ukraine peace talks,” Department of Energy assistant director Rodela Romero said yesterday.

Romero added that Iraq’s restored production at Lukoil’s West Qurna 2 oilfield, one of the world’s largest, also exerted downward pressure on prices.

While this week’s average MOPS prices have eased week-on-week, Jetti Petroleum president Leo Bellas said the weakening of the peso against the greenback reduced the potential rollback on domestic pumps.

The local currency sank to a fresh record low of 59.22 to the dollar last Tuesday.

“Also, the freight and premium components, while these have tapered down as well, are still elevated,” Bellas said.

Last Tuesday, oil firms hiked gasoline prices by P1.20 per liter, while no adjustments were implemented for diesel and kerosene.