Filipino workers may still grudgingly drive back to work after a long weekend break, but that mood may still shift as their financial burden at the oil pumps takes a favorable turn with diesel prices going down by P1.90 per liter; and gasoline prices by P1.15 per liter.

Additionally, for kerosene which is an essential base for aviation fuel and also a key commodity for households and other key industries, will be on rollback by P1.85 per liter, according to the industry players.

As of this writing, the oil firms that already advised on their slashed prices effective Tuesday (August 27) had been Shell Pilipinas Corporation, Cleanfuel, Seaoil, Chevron, Jetti Petroleum, PetroGazz and PTT Philippines; while their industry peers are also anticipated to match these price cuts at the domestic pumps.

The general sentiment in the global oil market last week focused attention on the lingering economic slowdown fears, hence, prices on trading outcomes primarily tracked downward trajectories.

The dip in prices in recent days had also been partly propped by the recent report of the Organization of the Petroleum Exporting Countries (OPEC) which effectively affirmed overall demand downturn for oil commodities throughout the remaining months of 2024.

Nevertheless, the sting of price hikes may soon be back at the domestic pumps following weekend’s aggressive exchange of missile attacks between Israel and Lebanon’s Hezbollah; raising fears of possible escalation to a wider war.

At the Red Sea, a Greek oil tanker carrying crude from Iran’s Basrah oil production region was also attacked by the Houthi militias; and that added up to the intensifying friction in the Middle East.

Latest developments in the geopolitical realm had prompted international benchmark Brent crude to inch back close to $80 per barrel level as of Monday (August 26) trading, after its drop to $76 per barrel in most trading days last week.

Oil price adjustments at the domestic pumps are anchored on cost movements drawn from the Mean of Platts Singapore (MOPS) index, which in turn, is influenced by pricing pressure due to global geopolitical events as well as macroeconomic fundamentals across key economies.

For an oil import-dependent economy like the Philippines, the weekly price swing at gasoline stations – especially for cost upticks – would also constantly spark off strain on household budgets and a daily stress to the country’s public transport sector.