The country’s oil firms are expected to cut pump prices on Tuesday by as much as P1.70 per liter to reflect the movement of prices in the world market, an energy official said Friday.
Rodela Romero, Director III of the Department of Energy’s Oil Industry Management Bureau, said the indicative price adjustment per liter for the week of Sept. 13 showed a rollback in pump prices across all products.
“Based on MOPS (Mean of Platts Singapore), not included in the cost of doing business of oil companies and for four-day trading only. Rollback for gasoline of P0.30 to P0.70 per liter, automotive diesel oil (ADO) at P1 to P1.50 per liter, and kerosene at P1.25 to P1.70 per liter,” Romero said.
She said the price movement might still change based on Friday’s trading and oil companies operating costs.
The rollback would have been bigger if not for the peso’s current weakness against the US dollar, as the local currency has slid to record lows recently, and the world market is not “biting” into the small output cut by the Organization of the Petroleum Exporting Countries (OPEC) and its allies this week, DOE officials added.
“The reasons (for the decline) are the weakening demand due to China’s lockdowns and prospects of more interest rate hikes,” Romero said.
On September 6, the oil companies implemented a per liter decrease in gasoline by P2.60, diesel by P1.55, and P1.60 for kerosene.
These resulted in the total year-to-date adjustments at a net increase of P16.95 per liter for gasoline, P36.25 per liter for diesel, and P31.60 per liter for kerosene.
World oil prices softened in the past two weeks due to the weaker global demand outlook after China escalated COVID-19 curbs and US Federal Reserve officials signaled further interest rate hikes amid global recession fears.
Chinese authorities imposed stricter lockdowns in several major cities to contain an outbreak of coronavirus.
The OPEC+ producers’ meeting held on Sept. 5 also influenced the movement of prices.