Fuel Prices Seen Declining Up to PHP1.50/Liter Next Week

A rollback in fuel prices is expected to hit domestic markets by as much as PHP1.50 per liter in the first week of August, despite ongoing tensions in the Middle East.

Jetti Petroleum President Leo Bellas said that diesel prices could be rolled back by PHP0.50 to PHP1.00 per liter next week, while gasoline prices may fall by PHP1.00 to PHP1.50 per liter.

The price of Brent crude declined early this week after jumping to over USD100 per barrel last week due to cautious optimism over the US-Iran truce outweighing geopolitical risk.

However, supply risks remain high due to still-limited flows from the region through the Strait of Hormuz, and dwindling US oil inventories further added to supply worries.