Manila: A significant cut in domestic fuel prices is expected next week as international oil prices have declined by around USD20 per barrel as of Wednesday, ahead of the scheduled signing of a U.S.-Iran peace deal on Friday. Department of Energy (DOE) Director Rino Abad, in an interview on Bagong Pilipinas Ngayon on Thursday, said oil prices are expected to decrease further in the coming days due to improvements in the situation in the Middle East.

According to Philippines News Agency, Abad mentioned, 'We expect a huge rollback next week. A huge chunk has been reduced from prices of petroleum products in the first three days of this week's trading and this is not expected to be revised,' he said in Filipino. This week, domestic fuel prices posted mixed movements, with diesel prices cut by around PHP3 per liter and kerosene by around PHP0.50 per liter, while gasoline prices increased by more than PHP1 per liter.

Abad denied claims that price increases are being implemented more frequently than rollbacks. He said oil price adjustments depend on several factors, primarily demand and supply conditions in relation to developments in the Middle East, as well as foreign exchange movements. He stressed that fuel price adjustments are driven by market factors and not by the preferences of stakeholders.