Motorists in the Philippines may see a significant reduction in fuel prices next week, with diesel expected to decrease by as much as P9.50 per liter and gasoline by P3 to P5 per liter, based on the first four trading days of the week.
The potential rollback follows a recent interim agreement between the United States and Iran, which has eased tensions and could lead to the reopening of the Strait of Hormuz, a critical waterway for global oil shipments. An industry source noted that oil markets have already begun pricing in the return of Middle Eastern crude supplies, as negotiators have 60 days to finalize a broader peace deal.
Additionally, replacement fuel supplies have helped alleviate immediate market tightness, with Asian refiners securing alternative crude feedstocks to boost refined product output. Gasoline prices also softened as refineries resumed operations after maintenance shutdowns and sought crude from non-Middle Eastern sources.
The stronger Philippine peso against the US dollar further contributed to lower fuel costs. Oil companies are expected to announce final adjustments and may implement the price cuts on Tuesday, June 23.