Lower diesel prices in sight next week but gasoline may move higher

National

LOWER diesel prices may greet motorists next week, with a rollback of up to P8 to P10 per liter in sight, though Middle East tensions could limit further relief.

Gasoline, however, could stay flat or increase by as much as P1 per liter, based on early trading at the Mean of Platts Singapore (MOPS), the Asia-Pacific benchmark for refined fuel pricing.

Market sentiment has been shaken by renewed tensions in the Middle East, particularly in the Strait of Hormuz, a key global oil shipping route.

US President Donald Trump has ordered a “shoot and kill” directive against small Iranian boats allegedly laying mines in the area, which handles about a fifth of global oil and gas flows, and also claimed the United States has “total control” of the waterway following reports of Iranian seizure of two container vessels.

According to a Philstar report, an industry source said markets have become highly reactive to shipping disruptions, with supply chain interruptions driving price swings.

These developments have pushed MOPS prices and premiums higher in recent days, narrowing the expected diesel rollback and shifting earlier forecasts for gasoline from a possible decline to a potential increase.

If realized, the movement would mark diesel’s third straight price cut after five consecutive increases driven by earlier global supply shocks.

Fuel prices already moved lower this week, with diesel, gasoline, and kerosene down by at least P24.94, P3.41, and P2 per liter, respectively, following

government-directed adjustments. Shell has also

implemented a P5-per-liter discount on all fuels until April 30, subject to minimum purchases of P1,500 for four-wheel vehicles and P200 for motorcycles.

Energy Secretary Sharon Garin said the government has been enforcing mandated price adjustments to prevent excessive pricing by oil firms, noting that the national energy emergency has given the Department of Energy authority to set limits on increases and ensure minimum rollbacks.

Despite the energy emergency entering its first month, the Department of Trade and Industry said there is no need yet to impose price controls on basic goods.

Trade Secretary Cristina Roque said automatic price freezes are not warranted, adding that coordination with manufacturers remains smooth. She noted that “there’s no problem with the talks. They go very smoothly,” and confirmed that prices of basic necessities will stay unchanged until May 10.

To support mitigation measures, the government has ordered agencies to cut maintenance and other operating expenses by 20 percent and defer capital outlays, including non-essential infrastructure projects and vehicle purchases, with expected savings of about P236.6 billion.(MyTVCebu)