Manila: Prices of gasoline products are projected to rise next week, unlike those of diesel, which are seen to decrease given the movement of the benchmark due to demand and the impact of external developments.

According to Philippines News Agency, Jetti Petroleum president Leo Bellas stated that gasoline prices are forecast to rise by PHP0.40 to PHP0.60 per liter next week, while diesel prices are expected to drop by PHP0.70 to PHP0.90 per liter. Bellas commented on the fluctuations in the Mean of Platts Singapore (MOPS) prices, noting that diesel prices are declining as demand appears to be slowing amid increased product availability. In contrast, gasoline prices remain strong due to the seasonal summer demand.

Bellas explained that crude oil prices have generally weakened this week, influenced by the potential easing of sanctions on Russia, which could occur if a ceasefire or peace deal is reached during the meeting between US President Donald Trump and Russian President Vladimir Putin. He also mentioned that bearish inventory and supply data, along with concerns over declining demand, have impacted prices, with US crude and diesel inventories rising more than expected.

Additionally, Bellas highlighted the impact of easing trade war tensions following the US and China's decision to extend the tariff adjustment pause. He mentioned the optimistic demand outlook due to the possibility of a US interest rate cut in September. However, he warned that the uncertainty surrounding the US-Russia peace talks could add a bullish risk premium, as the potential failure of a deal might increase economic pressure on Russia and its oil buyers.

This week's fuel price decline marks a reversal from the previous week's adjustments.