Global market shifts drive mixed fuel price changes
Final price adjustments from local oil companies will be announced on Monday, with implementation set for Tuesday.
(FILE PHOTO) Oil firms are expected to slash domestic pump prices in the next few days, with gasoline and diesel dropping by P1 to P1.30 per liter and kerosene by P1.20 to P1.35 per liter. In the video, pump attendants serve customers at a gas station in Ermita, Manila on Sunday, 8 September 2024.
The mixed movement in fuel prices is expected to continue next week, with diesel and kerosene poised for rollbacks while gasoline prices may remain unchanged or see slight reductions at most.
Department of Energy (DOE) Oil Industry Management Bureau Director Rodela Romero said on Friday that the projected adjustments are based on the four-day trading average of Mean of Platts Singapore (MOPS) and developments in the global oil market.
Romero said diesel prices are expected to decline by P0.20 to P0.50 per liter, while kerosene may drop by P0.10 to P0.25 per liter.
Gasoline prices, on the other hand, may remain unchanged or see a rollback of up to P0.30 per liter.
The anticipated price movements reflect a combination of global factors, including Saudi Aramco’s recent price hike for Asian buyers amid rising demand from China and India, a decline in Organization of the Petroleum Exporting Countries (OPEC) production due to lower output from Iran and Nigeria, and market reactions to US President Donald Trump’s tariff plans affecting Canada, Mexico, and China.
“Saudi Aramco, world’s leading oil exporter, announced last Wednesday that they will increase prices on buyers in Asia for March delivery amid rising demand from China and India as US sanctions disrupt Russian supply,” Romero explained.
Jetti Petroleum President Leo Bellas also noted that oil prices retreated after Trump agreed to delay imposing steep tariffs on Mexico and Canada, easing supply concerns.
Meanwhile, weaker demand in the US, following a larger-than-expected buildup in crude oil and gasoline stockpiles, added downward pressure on prices.
However, the market continues to monitor potential supply disruptions, particularly from Iran, and the impact of US sanctions on Russian oil exports, which have driven up Saudi crude prices for Asian buyers.
Gasoline prices increased by P0.70 per liter this week, while diesel and kerosene prices went down by P1.15 per liter and P0.90 per liter, respectively.
Final price adjustments from local oil companies will be announced on Monday, with implementation set for Tuesday.