Oil price adjustments next week will likely be a combination of good and bad news depending on which fuel motorists load up.
Based on the oil trading data in the past five days as per the Mean of Platts Singapore (MoPS), an industry source told the Daily Tribune that the price of gasoline is expected to increase by around P4 to P4.30 per liter starting Tuesday.
The price of diesel, on the other hand, is projected to decline by around P2.40 to P2.70.
In a separate advisory, Unioil has leaner estimates. The oil firm saw diesel going down by around P2 to P2.20 per liter and gasoline increasing by P3.80 to P4 per liter.
Data from the Department of Energy (DoE) as of 17 May showed that the year-to-date adjustments of fuel prices stood at a net increase of P31.40 per liter for diesel and P21.60 per liter for gasoline.
Reduction hopes up
Oil companies announce price adjustments every Monday to be implemented on the following day’s morning. They adjust their prices every week based on the movement of the MoPS — the regional pricing benchmark adopted by the deregulated downstream oil sector.
Being a net importer of oil, importers and even the government cannot assure motorists of a continued oil price reduction because the country is directly affected by the volatility in the international market.
As a new administration prepares to take over the Rodrigo Duterte regime, industry stakeholders are hoping that the persisting high prices of fuel will be tempered.
President-in-waiting Ferdinand “Bongbong” Marcos Jr. had already signified his willingness to lower the commodity prices.
Marcos said he preferred to slash the excise tax on fuel instead of pursuing his previous pronouncement to give out fuel subsidies.
“So my approach would be to continue to collect the excise tax but provide an oil subsidy so that anybody who is using oil-related products will feel the effect,” Marcos said.
Marcos noted that many will be “left behind” if the proposed P200 monthly assistance is pushed through because of the “imperfect” system of the distribution of financial assistance.
He said that there should be an oil subsidy provision, but the government is already doing that — particularly for public utility vehicle drivers affected by the fuel price increase.