Oil player Phoenix Petroleum Philippines led the new round of price rollback of P0.40 per liter for diesel effective 12 noon Saturday.
Other oil companies are expected to follow the price cut which ended three consecutive weeks of price increase for diesel.
Gasoline prices, however, is still expected to go up next week.
“Expect fuel prices to have a rollback for diesel and an increase for gasoline. Diesel should decrease by P0.40 -0.50 per liter while gasoline should increase by P0.20-0.25 per liter,” Unioil Philippines said in its advisory.
Domestic pump prices move to reflect the movement in world oil prices as the Philippines import more than 90 percent of its fuel requirements.
On July 2, Tuesday, the country’s oil firms implemented a hefty oil price hike of P1.20 per liter for gasoline, P1 per liter for kerosene and P0.95 per liter for diesel.
World oil prices went up last week due to the ongoing trade conflict between the US and China which could dampen demand.
The Department of Energy said weak manufacturing data released last week added to worries about slipping demand for crude oil.
The agency said some analysts see oil supply to remain tight as the Organization of Petroleum Exporting Countries and its allies including Russia may extend the production cut during their meeting in Vienna this week.