MANILA — Motorists may see substantial reductions in pump prices next week, with diesel expected to decline by as much as PHP9.50 per liter and gasoline by up to PHP5 per liter amid easing global oil prices.

The projected rollback comes as international oil markets react to expectations of the full reopening of the Strait of Hormuz following an interim peace agreement between the United States and Iran.

The strategic waterway had experienced disruptions during the Middle East crisis that began in late February, contributing to a sharp increase in global oil prices.

Based on industry estimates, diesel prices could be reduced by PHP7.50 to PHP9.50 per liter, while gasoline prices may fall by PHP3 to PHP5 per liter.

Jetti Petroleum President Leo Bellas said declining oil prices reflected market expectations that crude supplies from the Middle East would soon return.

“World oil prices declined this week as the market is already pricing in the potential reopening of the Strait of Hormuz and the immediate return of Middle Eastern crude to the market, after the U.S. and Iran reached an interim agreement,” Bellas said in a message to journalists.

He noted that the agreement, which has been electronically signed by the leaders of both countries, gives negotiators from the United States and Iran 60 days to finalize a permanent deal.

“Reinforcing the easing of diesel and middle distillate prices is the availability of replacement flows that helped reduce immediate market tightness as Asian refiners managed to secure alternative crude feedstock, allowing them to support higher refined product output despite ongoing disruptions linked to the loss of Middle Eastern supply,” Bellas said.

According to Bellas, gasoline prices were also pressured downward by the resumption of refinery operations after scheduled maintenance and the availability of alternative crude sources for Asian refiners.

He said these developments helped ease supply constraints even as demand remained strong and inventories stayed low.

Bellas also cited the strengthening of the Philippine peso against the U.S. dollar as another factor that contributed to lower domestic fuel prices this week.