Fuel Prices Are Set to Roll Back Just in Time for New Year's Eve

Motorists can anticipate a slight decrease in fuel prices next week, bringing some relief as the new year draws to a close. This anticipated fuel price rollback is attributed to a combination of factors impacting the global oil market.

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Factors influencing the rollback

The International Energy Agency (IEA) continues to forecast an oversupplied oil market in 2025, even considering the potential impact of production decisions by the Organization of the Petroleum Exporting Countries and its allies (OPEC+). With this oversupply outlook, there is expected to be a downward pressure on oil prices.

Estimated price adjustments

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While the final adjustments will depend on the outcome of Friday's trading, preliminary estimates suggest the following potential price reductions:

• Gasoline: P0.30 to P0.65 per liter

• Diesel: P0.30 to P0.55 per liter

• Kerosene: P0.80 to P0.90 per liter

Recent price movements

It's important to note that this anticipated fuel price rollback follows a recent price hike. On Tuesday, 24 Dec, oil companies implemented the following price adjustments:

• Gasoline: P0.50 per liter increase

• Diesel: P1.45 per liter increase

• Kerosene: P0.75 per liter increase

These recent increases have contributed to the year-to-date net increase in gasoline and diesel prices.

Year-to-Date Price Trends

• Gasoline: Year-to-date net increase of P13.05 per liter

• Diesel: Year-to-date net increase of P11.30 per liter

• Kerosene: Year-to-date net decrease of P1.80 per liter

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This anticipated fuel price rollback ahead of the New Year's Eve will definitely offer some respite to motorists. However, it's important to remember that global oil market dynamics are very complex, hence, they are subject to change regularly.

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