JANUARY 2, 2026 — Motorists may see modest relief at the pumps next week as fuel prices are set for a slight rollback, according to the Department of Energy (DOE).

Based on three-day trading in the Mean of Platts Singapore, gasoline is expected to drop by P0.50 per liter, diesel by P0.15, and kerosene by P0.20. 

DOE Oil Industry Management Bureau Assistant Director Rodela Romero cautioned that the cuts remain limited.

“Mukhang hindi lalaki kasi wala pa dito ‘yung oil company operating cost and other premium. Kaya minsan, nababaliktad pa ‘yung pangyayari lalo na yung P0.15 at P0.20,” she said. 

(It doesn’t look like it will widen because operating costs and other premiums are not yet included. Sometimes the situation even reverses, especially with the P0.15 and P0.20.)

Romero explained that while global oversupply and rising U.S. inventories are pulling prices down, geopolitical tensions continue to push them upward. The Russia-Ukraine peace talks and unrest in the Middle East remain key factors.

China’s weaker demand and OPEC+ countries’ strategy to expand market share instead of raising prices have also influenced the current trend. Analysts note that the market remains volatile, with supply and demand easily distorted by political conflicts.

“Talagang volatile, although sinabi ng analyst nitong early part ng 2026, dahil maraming supply, mahina ang demand, so may chance na bumaba ang presyo,” Romero added. 

(It’s really volatile, although analysts said early in 2026 that with high supply and weak demand, there’s a chance prices could go down.)

The DOE reported that 2025 closed with steep net increases: 

• gasoline rose P20.50 per liter
• diesel P20.85
• kerosene P5.55

Liquefied petroleum gas (LPG), however, recorded a net decrease of P7.20.

For the public, even small rollbacks matter. Transport groups and ordinary commuters are quick to point out that every centavo counts, especially after last year’s heavy hikes. The question now is whether these reductions will hold, or if global conflicts will once again reverse the trend.

(Image: Philippine News Agency)