Fuel Price Rollback Seen

Expect a slight rollback in pump prices next week if the fragile ceasefire between Israel and Iran holds and calms the situation in the Middle East, an industry expert said yesterday.

- By Brix Lelis

Following two days of shaky trading in the global oil market, Jetti Petroleum president Leo Bellas estimates a rollback of P0.80 to P1.10 per liter for diesel prices.

Gasoline prices, meanwhile, may either climb by P0.10 or decline by P0.20 per liter next week, he said.

"The decline in prices started with the easing of war risk premium on crude oil following the de-escalation of the (Israel-Iran) conflict," Bellas said.

He said global oil prices dropped further following a ceasefire between Israel and Iran, which alleviated fears of supply disruption in the Middle East.

Bellas, however, clarified that the initial indication of domestic price movement may still change, depending on the outcome of trading in the next three days.

"While tension has de-escalated, the situation in the Middle East is still fragile but holding so far. Crude oil prices could be range-bound in the coming days," he said.

For this week, oil firms agreed to implement fuel price hikes on a staggered basis to soften their blow on motorists as diesel prices surged by over P5 per liter.

Gasoline, diesel and kerosene prices increased by P1.75, P2.60 and P2.40 per liter on Tuesday, respectively.

A second wave of identical increases, meanwhile, is set to follow today, bringing this week's total hike for gasoline, diesel and kerosene to P3.50, P5.20 and P4.80 per liter, respectively.

To ensure compliance with the agreed staggered pricing mechanism, Department of Energy (DOE) officials yesterday conducted on-site monitoring activities at retail fuel outlets in Taguig.

"Filipino consumers deserve not only access to fuel but also fair and honest treatment at the retail price level," DOE officer-in-charge Sharon Garin said.

Monitoring