Motorists are set for a steep drop in fuel prices, a respite after months of price volatility.

Based on the four-day trading average of the Mean of Platts Singapore (MOPS), diesel is expected to see a hefty rollback of approximately ₱3 to ₱3.20 per liter. Additionally, kerosene prices are also projected to decrease by about ₱3.00 per liter.

Gasoline prices, however, could either hold steady or see a marginal cut of up to ₱0.40 per liter.

The Department of Energy’s (DOE) Oil Industry Management Bureau (OIMB) attributed the easing prices to potential end to geopolitical conflict and a global market oversupply.

OIMB Director Rodela Romero noted that a “possible Ukraine-Russia ceasefire could lift Western sanctions on Russian oil.”

The United States (US) sanctions imposed on major Russian oil producers, including Rosneft and Lukoil, prompted several Indian and Chinese importers to halt purchases, signaling a shift in global production transport.

Adding to the stability, Dutch financial giant ING stated that the recent US holiday provided a “little room for breathing” in oil trading, reducing the likelihood of major price swings.

The expected rollback offers relief for diesel consumers, whose prices have increased by ₱5.50 per liter this month alone. However, the relief for gasoline will be less pronounced.

Jetti Petroleum President Leo Bellas explained that this is due to a lack of major shifts in Asian oil benchmarks.

“While Asian gasoline prices have eased down slightly as well, the premium and freight components have remained elevated due to a tight supply-demand balance,” Bellas said.