Manila: Oil prices are projected to decline by as much as PHP1.20 per liter next week on forecast oversupply at least in the first quarter of 2026. In an advisory, Jetti Petroleum president Leo Bellas said diesel prices are projected to go down between PHP1.00 to PHP1.20 per liter and gasoline between PHP0.60 to PHP0.80 per liter based on foreign exchange rate movements and Asian benchmark rates as of Thursday this week.

According to Philippines News Agency, oversupply concerns have led to a decline in oil prices as the prospect of a Russia-Ukraine ceasefire could result in the eventual restoration of disrupted Russian supply flows. Jetti Petroleum's president noted that tight supply issues are easing as refineries return from turnaround following maintenance.

Furthermore, the prospect of increased exports from China, as refineries are set to boost refinery runs following the renewal of the crude import quota, and expectations of weaker global gasoline demand through the winter season are major factors contributing to this week's price decline.

Authorities have projected the continued decline in fuel prices until the first quarter of 2026 due to oversupply, benefiting consumers. This week, prices of both diesel and gasoline were rolled back by PHP0.20 per liter.