Hefty oil price rollback next week

Motorists, especially those loading up diesel, can expect a hefty price rollback next week amid oil price cuts due to lower regional demand brought by the renewed Covid-19 lockdown in China.

Based on the oil trading data from Monday to Thursday, an industry source told the Daily Tribune on Friday that both diesel prices will be slashed by around P3.70 to P3.90 per liter.

Gasoline prices, on the other hand, will be down by around P1.10 to P1.30 per liter.

The source, however, said the projection is still subject to change as it does not include the Friday data, which usually comes out late at night.

During a Laging Handa briefing on Friday, Assistant Director Rodela Romero, Oil Industry Management Bureau ng Department of Energy, confirmed the projected price rollback.

"Based on four days of trading in Singapore based on the Mean of Platts Singapore which is a benchmark of Asian countries, we can expect a rollback in all petroleum products. Hopefully, this Friday's trading will add to the said rollback," Romero said.

She added: "Although your reason is not good, isn't that a primary reason for the surge of Covid in Mainland China? If you remember last week, I mentioned that there were around 23,000 cases per day — now it has increased, the case of Covid in Mainland China has increased to 28,000 cases per day."

Romero said fuel inventories in the United States also significantly increased.

Oil companies, on 21 November, announced that diesel prices will roll back by P2.15 per liter and kerosene prices by P2.10 per liter. Gasoline prices will also decline but by a minimal P0.40 per liter only.

Based on the oil monitoring data from the Department of Energy, the cumulative increase in gasoline price as of 15 November stood at P17.25 per liter, diesel at P36.30 per liter, and kerosene at P28.60 per liter.

Oil companies announce price adjustments every Monday to be implemented the following day's morning.