Diesel Prices in Philippines Seen Dropping Up to P8 Next Week

THE Department of Energy (DoE) expects diesel prices to decline by as much as P8 next week with Saudi Arabia rerouting large quantities of oil away from threatened Red Sea routes. “There’s a trend of declining prices for the past three days,” Rino E. Abad, director of the DoE’s Oil Industry Management Bureau, said at a briefing on Tuesday. Saudi Aramco was reported to be loading about 14 million barrels of crude oil for shipment via Persian Gulf routes after an attack on its east-west pipeline disrupted shipments to the Red Sea. The company has loaded seven Very Large Crude Carriers set to transit the Persian Gulf, according to Reuters. “I think Saudi is sending the message that it will continue the supply to its customers,” Mr. Abad said. He also said the United Nations General Assembly is being closely watched as a possible venue for US and Iranian talks. In an advisory covering this week, the DoE, which gained the authority to guide fuel prices during the energy emergency, said oil companies can increase gasoline prices by up to P4.88 per liter, diesel by P8.82 per liter, and kerosene by P6.47 per liter. The regional benchmark Mean of Platts Singapore (MOPS) was signaling on Sept. 21 declines in diesel and kerosene prices of P7.98 and P0.86 per liter, respectively. “If the Sept. 21 MOPS price level is sustained this week, very likely that the domestic pump price movement next week will be a rollback,” Jetti Petroleum, Inc. President Leo P. Bellas said. — Sheldeen Joy Talavera