A substantial reduction in diesel prices is anticipated in the Philippines next week, with projections indicating a potential decrease of up to P6.50 per liter. This forecast comes as a two-week ceasefire between the United States and Iran holds, easing global oil market tensions.
Industry sources, citing data from the first four trading days of the week, suggest diesel prices could fall between P5.50 and P6.50 per liter. This marks a significant increase from earlier estimates, which predicted a rollback of only P2.50 to P3.50 per liter.
"Projections could still change, however, with one more trading session left this week," noted an industry insider.
In contrast, gasoline prices are expected to remain stable or see a minimal decrease of up to P1 per liter. Analysts caution that any price relief may be temporary, given ongoing uncertainties surrounding the international truce.
US Vice President JD Vance has publicly described the ceasefire agreement as "fragile," signaling potential volatility ahead. "If the Iranians don't do the exact same thing, they're going to find out that the president of the United States is not one to mess around. He's impatient. He's impatient to make progress," Vance reportedly stated during remarks in Hungary.
The potential price drop offers some respite for consumers and industries reliant on diesel, following a period of steep increases. Since conflict erupted on February 28, local diesel prices have surged by as much as P100 per liter, placing significant strain on transportation and logistics sectors.
Final adjustments will be confirmed after the week's closing trading session, with oil companies expected to announce official price changes in the coming days.