Hefty gasoline price rollback next week, increase for diesel

MANILA, Philippines — A mixed movement in pump prices is expected next week, with gasoline poised for a hefty rollback while diesel could see a slight increase.

“Based on the four-day trading of MOPS (Mean of Platts Singapore), we are expecting a mixed movement on the prices of petroleum products,” Department of Energy (DOE) Oil Industry Management Bureau assistant director Rodela Romero said.

Romero said estimates show possible reductions of P1.60 to P1.90 per liter for gasoline and P0.40 to P0.60 per liter for kerosene.

She said the price of diesel, on the other hand, could see no movement or an increase of P0.10 to P0.20 per liter.

An oil industry source, on the other hand, estimated a potential upward adjustment ranging from P0.05 to P0.15 per liter, and a possible decrease of between P1.80 and P1.90 per liter for gasoline.

“Reasons for the first two days of the week contributed to rollback such as elevated interest rates, higher US dollar, and the relaxation of Russia’s fuel import ban,” Romero said.

“But long-term reason for increase is still the extension of the voluntary cuts of Russia and Saudi until the end of 2023. Added to it, are the fall of US stockpile contributing to worries of tight global supplies and unexpected strong demand from China,” she said.

The final price movements will be announced by oil companies on Monday, which will take effect the next day.

Romero said prices are still volatile and cautioned motorists to manage their expectations.

Energy Secretary Raphael Lotilla earlier said domestic pump prices are expected to fluctuate due to external factors impacting global oil prices.

“It is volatile and we have to always be ready,” he said.

Last Tuesday, oil companies reduced prices by P0.20 per liter for both gasoline and diesel, and a slightly higher P0.50 per liter for kerosene.

These adjustments ended the 11 consecutive weeks of price hikes for diesel and kerosene which have totaled to P17.30 per liter and P15.95 per liter, respectively, and 10 straight weeks for gasoline amounting to a total of P11.85 per liter.

Year-to-date, DOE data showed that price adjustments have resulted in a net increase of P17.30 per liter for gasoline, P13.40 per liter for diesel and P9.44 per liter for kerosene.