By Myrna Velasco
Oil companies are expected to implement a big-time price rollback of as much as P3.50 per liter on fuel products next week.
Some industry players are anticipating price cuts for diesel and gasoline products at the range of P2.50 to P3.50 per liter due to the significant downtrend in global oil prices. But most of the oil companies hinted a rollback of P2.50 per liter for both diesel and gasoline products.
As of press time, oil firm PetroGazz already started cutting its prices for diesel and gasoline by P2.00 per liter on Friday (June 7), ahead of next week’s big-time price reductions.
For the year, this is the biggest price rollback that the oil companies will be implementing so far – following another sizeable reduction seen at the pumps just last week. The oil companies are expected to adjust their prices until Tuesday (June 11) next week.
Prior to the anticipated hefty rollbacks, fuel prices in Metro Manila as monitored by the Department of Energy (DOE) have been ranging from P45.90 to P60.26 per liter for gasoline; P40.05 to P48.34 per liter; and P44.85 to P54.65 per liter for kerosene.
In this week’s trading, Dubai crude which is the benchmark for Asian oil refiners had plunged to the level of US$59 per barrel – manifesting some degree of softening compared to last week.
Market analysts and watchers have been attributing the downtrend in prices to slower economic growths as the key trigger to the weakening demand of oil commodities.
The plot thickens on trade conflicts being instigated by the United States – not only with China now, but also with its neighbor Mexico, the latter of which also has vast major oil production being injected into world markets.
In a monitoring report by the DOE, it was stipulated that “concerns over the trade dispute between the United States and China may lead to an economic slowdown and reduced fuel consumption outweigh supply concerns.”
This month will also set an interesting play for the Organization of the Petroleum Exporting Countries (OPEC) and its Russia-led alliance of produces on their scheduled meeting to ascertain next moves that they will carry out for the oil markets.
The nosedive in world oil prices has been benefitting oil import-dependent countries like the Philippines because this translates to lower prices.
This is also a favorable development for the Philippines as this year marked another hike in excise taxes of petroleum products, thus, the price rollbacks served as a counterweight.