Oil price rollback seen

MANILA, Philippines — Lower pump prices of over P1 per liter are expected this week.

In its price forecast, Unioil said gasoline prices could decrease by P1.10-P1.30 per liter, while diesel could decline by P1.70-P1.80 per liter.

In a radio interview, Department of Energy-Oil Industry Management Bureau (DOE-OIMB) director Rodela Romero said fears of a financial crisis following the collapse of Silicon Valley Bank in the US spilled over in the oil market.

The SVB, the 16th largest commercial bank in the US, collapsed after customers withdrew their deposits in 48 hours. The lender’s fallout has raised concerns that rising interest rates could expose vulnerabilities in the global economy.

The projected price adjustment would mean gasoline would snap two consecutive weeks of uptrend in prices while diesel and kerosene are set to have two straight weeks of price cuts.

Oil companies announce the final price movements on Monday to take effect the next day.

Last week, oil firms raised gasoline prices by P1 per liter and reduced diesel prices by P0.10 per liter and kerosene by P0.60 per liter.