It's expected that fuel costs would drop next week

Consumers in the Philippines can look forward to more fuel price reductions next week, driven by declining oil prices on the global market. Over the past few days, the price of imported fuel has decreased, with gasoline falling by more than P2 per liter, based on the first three trading days of the week. While there are still two trading days remaining, industry experts are optimistic about continued price rollbacks.

Key Factors Driving the Decline

According to Leo Bellas, President of Jetti Petroleum, several factors are contributing to the downward trend in fuel prices:

1. Ceasefire in Gaza: The potential for a peace deal between Israel and Hamas has eased tensions in the region, reducing concerns about oil supply disruptions.

2. Growing US Oil Reserves: Increased oil reserves in the United States have helped stabilize global supply, putting downward pressure on prices.

3. Improved Geopolitical Conditions: As long as the situation in Gaza continues to improve and no new geopolitical issues arise, global oil prices are likely to remain on a downward trajectory.

Recent Fuel Price Trends

Retail fuel prices in the Philippines have already seen significant reductions over the past few weeks:

• Diesel: Prices have decreased by a total of P2.30 per liter over the past three weeks.

• Gasoline: Prices have dropped by P1 per liter over the past two weeks.

What This Means for Consumers

The expected price rollbacks next week will provide further relief to consumers, particularly those heavily reliant on diesel and gasoline for transportation and daily activities. The continued decline in fuel costs is a welcome development amid rising inflation and economic challenges.

Looking Ahead

While the outlook for fuel prices remains positive, experts caution that the situation could change if new geopolitical tensions arise or if there are significant shifts in global oil production. For now, however, consumers can anticipate more savings at the pump in the coming week.

Source: ABS-CBN News - Fuel Price Reductions