By Noriko Yamamoto

On Thursday, April 9, an announcement stating that motorists may finally see a break from relentless fuel price hikes as global oil benchmarks ease was released.

Industry sources noted that “MOPS (Mean of Platts Singapore) prices and premiums have softened due to the ceasefire deal in the Middle East.”

With this, Diesel is projected to drop by P2.50 to P3.40 per liter, while gasoline may decline by P1.00 per liter.

These estimates are based on trading during the first three days of the week, with final adjustments dependent on results on Friday, April 10.

Analysts also warn that modest rebounds could still occur despite the initial downward trend.

However, fuel companies typically reveal price changes every Monday, with the new rates being implemented the following day.

The shift is caused by a last-minute ceasefire agreement between the United States (U.S.) and Iran.

US-Iran ceasefire

U.S. President Donald Trump announced the deal just before his deadline for Tehran to reopen the Strait of Hormuz or face strikes on civilian infrastructure.

He emphasized that the truce hinged on Iran halting its blockade of oil and gas shipments through the strait, which carries about one-fifth of global supply.

Iran’s foreign minister Abbas Araqchi confirmed that the country would suspend counterattacks and allow safe passage.

Following this, Philippine President Ferdinand “Bongbong” Marcos Jr. said the country would maximize the two-week ceasefire to secure petroleum reserves.

“So we will take full advantage of the two weeks to increase our supply as much as possible and to continue to make whatever arrangements are possible,” he said. 

“We are all hoping and praying that the two-week ceasefire will extend further if the talks go well,” Marcos added.