Good news for motorists—and daily commuters may share in the same good news: The pump prices of petroleum products are expected to be rolled back again starting tomorrow.
“Expect fuel prices to roll back next week again,” independent oil player Unioil said Saturday in its weekly fuel forecast for Nov. 12 to 16.
This comes 11 days—and the fifth straight week of rollback in the prices of fuel products—after oil firms cut cooking gas or liquefied petroleum gas (LPG) prices by a big P7.50 per kilo or P82.50 per 11-kilo LNG tank effective 12:01 am Nov. 1 to reflect the lower contract price of LPG in the world market for November.
Diesel is expected to decrease by P2.00 to P2.10 per liter, while gasoline should decrease by P2.20 to P2.30 per liter, according to the forecast.
“Since Oct. 15, 2018 the price of diesel has decreased by a total P3.10 and the price of gasoline has decreased by a total of P5.55,” Unioil said.
Latest data from the Department of Energy showed diesel costs P43.55 to P48.79 per liter while gasoline prices range from P48.75 to P59.07 per liter.
Phoenix Petroleum Philippines led the latest price rollback of as much as P1.10 per liter effective 6 am Sunday.
“For the 4th straight week and for motorists to enjoy lower pump prices for the long weekend, Phoenix Petroleum Philippines will decrease the prices of gasoline by P1.10 per liter and diesel by P1 per liter effective 6 am of 04 November 2018,” the company said in its advisory.
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Other oil companies are expected to be on the chase.
The oil firms also cut auto LPG prices by P4.20 per liter.
The big rollback for LPG followed the major rollback implemented by the oil companies early in the week
of as much as P1.50 to P1.65 per liter for gasoline, P0.60 per liter for diesel and P0.65 per liter for kerosene.
Year-to-date adjustments prior to the rollback implemented by Phoenix are now at a net increase of P8.70 per liter for gasoline, P10.60 per liter for diesel and P9.60 per liter for kerosene.
Meanwhile, oil companies hope the Department of Finance will not change its mind and reimpose higher excise taxes in January so that consumers can get a break from the effects of higher inflation.
“That’s the beauty of deregulation. To gain competitive advantage some companies make price differentiation. In the bigger picture, we’re positive that these price rollbacks and the availability of NFA rice and reduction in price of commercial rice will certainly reduce inflation for the last quarter of the year,” Eastern Petroleum president Fernando Martinez said.
“Nonetheless, the oil price rollbacks should not encourage DOF (Finance Department) to reimpose the P2.50 per liter specific tax which was officially deferred... to give consumers breathing room from inflationary pressure,” Martinez said.
Year-to-date adjustments prior to the latest rollback implemented are a net increase of P8.70 per liter for gasoline, P10.60 per liter for diesel and P9.60 per liter for kerosene.
The Philippines imports more than 90 percent of its fuel requirements thus it is exposed to price volatilities in the world market.
World oil prices have declined recently but the market remains positive on the supply security due to the several developments, the Department of Energy said in its monitoring report.
It said oil prices continued the downward trend after reports of a strong build-up in US crude stockpiles and increased confidence about the availability of supplies towards the end of the year and into early 2019.
Swelling US inventories and concern that trade wars were curbing economic activity also pushed oil prices down.
Traders also noted that Iran’s exports have not declined as much as predicted a couple of months ago and it is now clear they will not fall to zero, even after US sanctions are imposed against Iran.