Pump prices will likely go down this week, and by as much as P0.50 per liter, ending several weeks of consecutive weekly oil price increases.
World oil prices came down after the Organization of Petroleum Exporting Countries and its allies agreed on Thursday to maintain production cuts for April, even though traders were expecting an increase in production outputs that would boost prices amid the anticipation of a global economic recovery.
“Expect fuel prices to go down next week (March 9 to 15). Diesel should go down by P0.40 to P0.50 per liter. Gasoline should go down by P0.10 per liter,” Unioil Philippines said in its weekly oil price forecast.
On March 2, the oil companies raised the price of gasoline by P1 per liter, diesel by P0.85 per liter and kerosene by P0.70 per liter.
That resulted in the year-to-date adjustments to stand at a net increase of P6.20 per liter of gasoline, P5.70 per liter of diesel and P5.05 per liter of kerosene.
According to a report by S&P Global Platts on Friday, the decision of OPEC and its allies “delivered a blow to many market participants who hoped for an overall increase in output, and pushed crude prices higher.”
S&P Global Platts said OPEC and its allies expressed concern over the ongoing economic volatility due to the coronavirus pandemic arising from the uneven vaccine rollout and possible additional strict lockdowns.