Motorists can look forward to significant fuel price reductions next week, as optimism over US-Iran peace talks pressures global oil markets.
Industry sources estimate that diesel prices may drop by P6.50 to P7.50 per liter, while gasoline could see cuts of P3.50 to P4.50 per liter starting June 2.
"Crude and refined fuel product prices are pressured by improving sentiments that the US and Iran are moving closer toward a peace deal, even though both parties still remain at odds over key issues, and growing optimism on the prospect that the Strait of Hormuz will be reopened soon," said a source who requested anonymity.
The estimates are based on the first four trading days of the Mean of Platts Singapore, the benchmark for Southeast Asian fuel prices. The projections also factor in average foreign exchange rates.