Manila: A respite is seen for vehicle owners next week as fuel prices are forecast to decrease, based on price developments as of Friday.

According to Philippines News Agency, Jetti Petroleum president Leo Bellas, in a statement, said diesel prices may go down by PHP1.30 to PHP1.50 per liter, and gasoline by PHP0.40 to PHP0.60 per liter. This projection is based on the Mean of Platts Singapore (MOPS), the benchmark of refined oil in Southeast Asia, along with the average foreign exchange rates observed so far this week.

Bellas attributed the projected decrease to several factors. He mentioned the additional increases in OPEC+ production and ongoing tariff uncertainties as the main reasons for the lower crude oil prices witnessed this week. He also noted that hopes for a diplomatic resolution to the Ukraine-Russia war have contributed to the weakening of oil prices.

The Jetti Petroleum president further highlighted the role of China in the fuel price movement, noting that Chinese refiners are ramping up production, thereby increasing the supply. However, he pointed out that losses were limited due to a larger-than-expected draw in US crude oil stockpiles, signaling healthy demand in the world's biggest economy, along with higher Saudi prices for Asia and solid Chinese crude imports in July.

Bellas also acknowledged that geopolitical risks and evolving US trade policy continue to add uncertainty and are still affecting the broader demand picture.