Motorists can expect substantial price reductions on petroleum products in the first week of June based on industry forecasts and market trends.
According to a source from the oil industry, a substantial rollback in petroleum product prices is expected during the first week of June. Based on the Mean of Platts Singapore (MOPS) and foreign exchange averages over the past four trading days, diesel prices may decrease by approximately ₱6.50 to ₱7.50 per liter, while gasoline prices may drop by ₱3.50 to ₱4.50 per liter.
The source cited improving sentiments around a potential peace agreement between the US and Iran, despite ongoing disputes over key issues, as well as optimism regarding the possible reopening of the Strait of Hormuz, as factors pressuring prices downward. Supply constraints in the diesel market are expected to ease, contributing to reduced prices.
Meanwhile, gasoline prices in Asia are anticipated to remain relatively stable, though they may decrease further depending on geopolitical developments in the Middle East. Official price adjustments are typically announced on Mondays and take effect on the following day.
Last Tuesday saw an increase in petroleum product prices: ₱1.60 per liter for gasoline, ₱1.96 for diesel, and ₱1.45 for kerosene. Even with the expected rollback, supply and demand risks persist due to a tight global gasoline market entering the summer season and decreasing inventories.
The source highlighted that while oil supply remains constrained and price volatility is likely amid high geopolitical risks, reports of an extended ceasefire between the US and Iran and resumed traffic through the Strait of Hormuz may continue to weigh on prices.
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/
