Gasoline and diesel prices are expected to decrease this week, according to an anonymous local fuel retailer. Based on the five-day average of global trading prices last week, gasoline could go down by P4 to P5 per liter, while diesel may drop significantly more, between P7.50 and P8.50 per liter. Kerosene prices, however, have no projected adjustment yet.
This downward trend comes amid improved market sentiment driven by reports that the United States and Iran are moving closer to a peace deal and have agreed to extend their ceasefire by another 60 days. There is also growing optimism that the Strait of Hormuz, a critical route for global oil shipments, will fully reopen soon. Additionally, supply tightness in the diesel market is easing as refiners secure alternative crude sources, helping pull benchmark prices lower. While gasoline supply remains tight due to summer demand and falling inventories, recent developments in the Middle East are pushing prices downward.
These reductions follow last week’s price hikes, where gasoline rose up to P1.60 per liter, diesel by up to P1.96 per liter, and kerosene by as much as P1.45 per liter. Department of Energy data for May 19–25, 2026, shows prices in Metro Manila averaging P88.10 per liter for regular gasoline, P82.70 for diesel, and P112.40 for kerosene.
For households, this means lower costs for daily commuting and transport, helping ease household expenses. For businesses—especially those in transport, logistics, agriculture, and delivery services—the steep drop in diesel prices will significantly cut operating costs, potentially reducing expenses for goods movement and services across the country. Even though geopolitical risks still exist and prices may swing in the future, this week’s rollback offers immediate financial relief to consumers and industries alike.
