Motorists can expect some relief at the pumps this week as diesel prices are set to decrease.
Starting Tuesday, Dec. 10, the price of diesel will drop by P0.50 per liter, and kerosene will see a P0.75 per liter reduction.
However, gasoline prices will continue their upward trend for the third consecutive week with a P0.40 per liter increase.
Oil companies, including Shell Pilipinas and PetroGazz, have announced these price adjustments.
Last week, the Department of Energy's Oil Industry Management Bureau (OIMB) attributed the gasoline price hikes to geopolitical tensions in the Middle East and delays in output increases from the Organization of the Petroleum Exporting Countries Plus (OPEC+).
Despite this, gasoline prices in Asia are not expected to surge significantly. India's gasoline exports increased by 66.65% year-on-year to 1.118 million metric tons in October, driven by strong domestic demand.
Meanwhile, the anticipated rollbacks were attributed to a forecasted decrease in demand, particularly from China.
Capital Economics, citing China's status as the world's largest oil importer, highlighted a "rapid structural shift" towards electric vehicles (EVs) and liquefied natural gas (LNG) trucks in the country, which is likely to further reduce oil demand.
The OIMB also identified the strengthening of the US dollar as a contributing factor to this week's price reductions. Additionally, the incoming US president has pledged to increase oil drilling.
"The week-on-week average of the Philippine peso appreciated versus the US dollar by P0.03 to P58.80 from P58.83 in the previous week," the DOE stated.