Motorists can expect a significant relief at the pump, with analysts projecting the year’s first ₱3 rollback in fuel prices.
Based on the four-day trading average of the Mean of Platts Singapore (MOPS), gasoline is anticipated to drop by around ₱3.30 to ₱4 per liter, while diesel could get a price slash of ₱2.90 to ₱3.40 per liter.
Kerosene is also seen to go down by ₱3.40 to ₱3.75.
Last week, gasoline prices in Metro Manila ranged from ₱61.25 to ₱71.48 per liter, while diesel was at around ₱53.10 to ₱56.10 per liter.
The common price for kerosene last week stood at ₱71.87 per liter.
Worries over a potential global recession may have influenced next week’s price projection, as the Department of Energy’s (DOE) Oil Industry Management Bureau (OIMB) pointed to rising economic friction between the United States (US) and China.
According to Rodela Romero, OIMB director, escalating trade tensions between the two economic giants could result in “fear of recession and reduce demand for crude oil.”
Aside from this, Middle Eastern developments are contributing to possible price cuts.
“Saudi Arabia is expected to cut by May its official selling price for Asia-bound crude,” Romero added.
With surprising fuel price rollbacks expected next week, Jetti Petroleum Inc. noted that further declines may be limited due to weaker demand.
“In the short term, the growing risk of weakening demand and rising production from OPEC+ could hinder a major rebound in oil prices,” Jetti President Leo Bellas elaborated.
Oil-producing nations are anticipated to raise their output by next month, from 135,000 barrels per day (BPD) to 441,000 BPD.
If these price projections are realized, this would be the second time that prices are rolled back in April.