Pump prices are expected to have a mixed movement next week, with diesel and kerosene going up while gasoline will go down to reflect the movement of prices in the world oil market, according to the Department of Energy.
“Based on the 4-day trading, there will be a mixed movement on the prices of liquid petroleum products. Rollback for gasoline and increase for diesel and kerosene,” DOE director for the Oil Industry Management Bureau Rodela Romero said.
Industry sources said gasoline prices will likely be rolled back by P0.35 to P0.45 per liter, while diesel and kerosene will increase by P0.40 to P0.50 per liter.
Sources said the price estimates are still subject to change as they are based on the first four days of trading only.
“The rollback is still due to the monetary policy implemented by Central Banks of big countries to address inflation while the increase is attributed to the output cut of KSA for July to be joined by Russia and Algeria by August,” Romero said.
On July 4, the oil firms cut the price of kerosene by P0.85 per liter and diesel and gasoline by P0.70 per liter.
The oil price rollback followed the rollback in the price of liquefied petroleum gas on July 1.
Meanwhile, Arnel Ty of the LPG Marketers Association expressed support for the DOE decision not to extend the deadline for applying for a license to operate for LPG players.
“RA 11592 has no provision of any extension, six months transition is already enough, and those who are complaining are those who won’t comply,” Ty said.
DOE said it will strictly enforce the July 7 deadline for obtaining a license to operate and a certificate of registration under the LPG Regulation Act.
DOE issued the advisory informing the public that the July 7, 2023 deadline prescribed in Section 24 of the LPG Industry Regulation Act and implemented through Section 39.1 of the agency’s Department Circular No.DC2022-11-0037 otherwise known as the “Guidelines on the Registration and Issuance of License to Operate to Qualified DOE-Regulated LPG Industry Participants and Penalizing Certain Prohibited Acts stays.
The deadline is the end of the six months transition period for those LPG participants already engaged in the LPG business as mandated by the law.
DOE said this is consistent with the legal opinion issued by the DOE’s Legal Services dated July 6, 2023.
“Please be informed further that pursuant to Section 39.1 of Department Circular No.DC2022- 11-0037, any existing Standards Compliance Certificate shall be considered void after 07 July 2023,” it said.
The agency said any DOE-regulated LPG industry participants conducting business in the LPG industry without the said LTO and corresponding applicable COR shall be in violation of the prohibited acts and will be penalized accordingly under the LPG Industry Regulation Act.
“The 07 July 2023 deadline however does not prevent any applicant from continuing the submission of LTO and COR application and the DOE will continue to accept and process them beyond the said deadline,” DOE said.
Under Chapter 5 of the LPG Regulation Act on registration, licenses, and permits, every LPG industry participant shall secure a license to operate for a specific activity from the DOE.
“All LPG industry participants shall conduct business only with LPG industry participants with a valid license to operate for the specific activity they are engaged in,” the law stated.
The DOE has the exclusive authority to issue the license to operate. The license shall be valid for a period of three years or any such period as may be determined by the DOE.
“Any person already engaged in any activity as defined herein, at the time of the effectivity of this Act, shall obtain a license to operate within six months from the promulgation of this Act’s implementing rules and regulations,” the LPG Regulation Act said.