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Wednesday, June 19, 2024

DOE, oil firms forecast a bit bigger price rollback

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Motorists can expect another round of oil price rollback of as much as P1.93 per liter for kerosene next week – a little higher than an earlier estimate of the Department of Energy.

DOE-Oil Industry Management Bureau Director Rino Abad said the indicative price decrease for September 13 to 19, 2022 are as follows: P0.64 per liter for gasoline; P1.52 per liter for diesel; and P1.93 per liter for kerosene.

For its part, Unioil Petroleum Philippines, in its fuel price forecast for September 13 to 19, 2022, said diesel prices would go down by P1.20 to P1.40 per liter while gasoline prices would decrease by P0.40 to P0.50 per liter.

Abad said the expected fuel price reduction was due to the continuing threat of lower demand on the back of another possible interest hike by US and Europe and the minimal impact of the production cut by Organization of the Petroleum Exporting Countries for October at 100,000 barrels per day.

The OPEC+ oil cartel agreed to cut production for the first time in more than a year as it seeks to lift prices that have tumbled due to recession fears.

OPEC+ earlier adopted huge cuts in output in 2020 when the COVID pandemic sent oil prices crashing, but it began to increase production modestly again last year as the market improved.

Oil prices soared to almost $140 a barrel in March after Russia invaded Ukraine. But they have since receded below $100 per barrel amid recession fears, COVID lockdowns in major consumer China, and Iran nuclear talks that could bring Iranian crude back into the market.

On Sept. 6, 2022, fuel firms implemented a rollback of P2.60 per liter for gasoline, P1.55 per liter for diesel and P1.60 per liter for kerosene.

The latest price rollbacks resulted in year-to-date price adjustments to stand at a net increase of P16.95 per liter for gasoline, P36.25 per liter for diesel, and P31.60 per liter for kerosene.

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