The drop in crude oil prices in the international market is projected to result in a big slash in domestic fuel prices next week.
Citing price developments and foreign exchange movements as of Thursday, Leo Bellas, Jetti Petroleum President, said diesel prices are forecast to decline between PHP4.30 and PHP4.50 per liter, and gasoline prices will likely go down between PHP12.50 and PHP13.50 per liter.
Bellas, in a message to journalists Friday, Nov. 6, said these figures exclude adjustments to ocean freight and insurance relative to last week.
“Oil weakened this week as diplomatic efforts to end the US-Iran conflict eased renewed escalation concerns in the Middle East, despite lingering supply disruption worries as attacks on shipping in the Strait of Hormuz and Saudi energy infrastructure continue,” he said.
Bellas explained that “perception of a lower chance of escalation following sweeping victories by the Democratic Party in the recent (U.S.) midterm elections also pressured prices.”
Prices of both gasoline and diesel also declined “due to lower crude prices, and expectations of higher supply availability following South Korea’s easing of diesel restrictions and the additional Chinese export quota.”
“Despite firming regional demand, gasoline still fell sharply on healthy supply outlook from China,” he said. “The stronger Philippine Peso against the US dollar also pushed prices lower this week.”
The local currency improved to the 62 level against the US dollar on Thursday, a redemption after reaching the 64 level against the greenback on Oct. 27, with the latter traced to several factors like the impact of the Middle East crisis, elevated domestic inflation and hikes in interest rates.*PNA
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