Motorists can anticipate a notable decrease in petroleum product prices in the first week of June, driven by improving global conditions and regional supply adjustments.
Officials from the petroleum industry have indicated that a significant rollback in the prices of petroleum products is possible in the first week of June. This expectation is based on recent trading averages of the Mean of Platts Singapore (MOPS) and foreign exchange rates over the past four days. Diesel prices may drop by PHP 6.50 to PHP 7.50 per liter, while gasoline prices could decrease by PHP 3.50 to PHP 4.50 per liter.
According to an industry source, the easing price pressures are linked to improving sentiments about a potential peace deal between the United States and Iran, despite ongoing disagreements on key issues. There is also optimism that the Strait of Hormuz might soon reopen, which could further stabilize supply chains. The diesel market appears to be loosening supply tightness, partly due to refiners securing alternative crude supplies.
In Asia, gasoline prices are expected to have limited movement but could decrease due to recent developments in the Middle East. Official price adjustments are typically announced every Monday and implemented the following day.
Although a rollback is anticipated, the source warns that global supply and demand risks remain due to strong gasoline market constraints during the start of the summer season and declining inventories. The extension of a ceasefire agreement for 60 days and the potential reopening of the Strait of Hormuz are expected to continue influencing prices downward.
Last week, petroleum product prices saw increases: gasoline prices rose by PHP 1.60 per liter, diesel by PHP 1.96 per liter, and kerosene by PHP 1.45 per liter.
Sources referenced:
- https://www.gmanetwork.com/news/balitambayan/balita/989504/malakihang-rollback-sa-presyo-ng-mga-produktong-petrolyo-posible-sa-unang-linggo-ng-hunyo/story/
