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Saturday, February 24, 2024

New price cuts on oil products loom next week

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Motorists can expect another rollback in pump prices in the coming week, Oil Industry Management Bureau Director Rino Abad confirmed Friday.

Abad said there is an expected price rollback “for all products” by Tuesday next week. Oil companies usually announce price adjustments every Monday, to be implemented on the following day.

Local oil industry sources, citing oil trading from November 14 to 17, told the Standard that the price of diesel may be reduced from P1.70 to P1.90 per liter.

Gasoline prices may go down by P0.70 to P0.90 per liter, the sources added.

Abad cited the weaker demand from top oil importer China amid its rising COVID-19 cases for the anticipated drop in fuel prices.

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On Tuesday, November 15, fuel firms hiked gasoline prices by P0.90 per liter and kerosene by P1.35 per liter, while diesel prices were reduced by P0.30 per liter.

This latest price adjustment brought the year-to-date adjustment to stand at a net increase of P18.15 per liter for gasoline, P36.00 per liter for diesel, and P29.95 per liter for kerosene.

Meanwhile, Senator Win Gatchalian said the Senate’s proposed 2023 budget highlights social safety nets in a bid to support economic recovery amid continuing uncertainties brought about by the Russia-Ukraine conflict and the COVID-19 pandemic.

“We recognize the need to support marginalized sectors of our society, but this should be targeted, which means only those in dire need should receive aid from the government,” Gatchalian stressed.

“As long as the Russia-Ukraine conflict is there, crude oil prices are likely to be around $90 per barrel by next year and we see local pump prices to hover around P70-P90 per liter,” added Gatchalian, chair of the Senate Committee on Energy and vice-chair of the Committee on Economic Affairs.

Financial subsidies provided by the government include the subsidy for the transport sector called the Pantawid Pasada Program and the Pantawid Pamilyang Pilipino Program (4Ps) for the poorest of the poor.

Other energy-related subsidies include the electrification programs of the Department of Energy (DOE) and the National Electrification Administration (NEA), the fuel and off-grid electrification for rural areas, and the Electric Cooperatives Emergency and Resiliency Fund (ECERF) to fund electric cooperatives in restoring distribution lines damaged by typhoons and other natural calamities.

Under the Senate’s proposed budget for next year, a total of P110.61 billion has been allocated for the 4Ps program while the Pantawid Pasada program carries a proposed budget of P5 billion.

Meanwhile, for the energy-related subsidies, the DOE electrification has a budget of P500 million, P1.6 billion for NEA electrification, and P200 million for ECERF.

“The Senate is making sure that protective mechanisms that would support vulnerable sectors are sufficiently backed in terms of budgetary support,” he said.

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