Mixed price movements in the gas pumps are expected in the first week of June.

Based on the four-day Mean of Platts Singapore (MOPS), gasoline prices may either retain their current price or increase by up to ₱0.40 per liter.

Diesel, on the other hand, is seeing an uncertain adjustment, as it could potentially have a ₱0.20 per liter rollback or increase by up to ₱0.40.

Kerosene is also set to decrease by ₱0.10 per liter.

According to the Department of Energy’s (DOE) Oil Industry Management Bureau (OIMB), next week’s price movements are affected by the European Union’s (EU) trade deal with the United States (US).

Earlier this week, the EU was pursuing trade talks with the US to lessen the 50 percent tariff on imported goods.

While this negotiation is in development, Rodela Romero, OIMB director, mentioned that there would be potential new US sanctions on Russia, while geopolitical tensions continue in oil-producing countries.

However, the rollbacks could be attributed to OPEC+’s plans of increasing oil production, as well as the “economic slowdown, particularly in Asia, and shifting energy priorities in countries like India, thus contributing to the reduced demand forecasts.”

Jetti Petroleum also noted that there has been progress between the US and Iran.

“[The] Iran and the US delegations made progress in their talks, concerns of tighter supply after the US barred the export of Venezuelan crude oil have pushed the benchmarks higher,” said Leo Bellas, Jetti Petroleum president.

“Prices also found support on possible new sanctions on Russia, decision by the US to extend the trade deal talks with the European Union, decline in US crude and fuels stockpiles, and the US court ruling on tariffs,” he added.

Refinery maintenance is nearing its completion, which will further contribute to the price movements in the first week of June, however, Bellas added that the rise of demand in gasoline could potentially drive prices higher due to summer demand.