Fuel prices seen to drop for 3rd consecutive week

LOCAL oil industry sources said on Friday that all fuel prices are projected to go down next week, due mostly to the market reacting to the US' imposed tariffs.

They said that gasoline prices would possibly roll back by around P0.10 to P0.40 per liter, while diesel could also go down by about P0.20 to P0.60 per liter.

Kerosene prices are also seen to drop by around P0.30 to P0.60 per liter.

These estimates are based on the 4-day trading of Mean of Platts Singapore (MOPS), the pricing basis of refined goods in Southeast Asia.

The local oil industry sources said the reasons for the possible decline in prices was mostly due to the effects of the US imposing tariffs on countries which, in turn, have started trade wars, and also a possible US recession that could affect oil demand.

"Based on this week's MOPS and Forex average for the first 4 days, local fuel prices are expected to go down once again next week. The possible price decline is mostly due to concerns that the tariff wars which in turn could slowdown economic growth and curtail global fuel demand. Mounting fears of a possible US economic slowdown have also weighed on prices as well," Jetti Petroleum president Leo Bellas said.

"However, the weaker US dollar and data that showed a tighter-than-expected US oil and fuel inventories have helped prices from sliding down further," he added.

"Based on the 4-day trading in MOPS and the monitoring of relevant news in the international oil market, we will be experiencing possible rollbacks by next week in the prices of petroleum products. These are attributed to the growing signs that the US and global economies are struggling which will hit demand, and fears of oversupply on oil have also exerted additional downward pressures on prices," Department of Energy-Oil Industry Management Bureau (DOE-OIMB) director Rodela Romero said.

Effective March 11, 2025, the local oil companies implemented a decrease of P1.70 per liter for gasoline, P0.90 per liter for diesel and P1.80 per liter for kerosene.

On a year-to-date basis, gasoline and diesel have a total net increase of P2.15 per liter and P3.05 per liter, respectively.

Meanwhile, kerosene has a total net decrease of P0.30 per liter.