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Thursday, December 7, 2023

P1 price cut on gas up; diesel, kerosene steady

Consumers can expect a rollback in gasoline prices starting Tuesday of as much as P1 per liter amid the softening of prices in the world oil market.

Diesel prices, however, will not move, according to the recent price forecast of Unioil Petroleum Philippines.

"Expect fuel prices to have a mixed movement next week (November 16 to 22). Diesel will have no price change. Gasoline should go down by P0.90 to P1  per liter," the company said.

On November 9, the oil companies also cut pump prices. Gasoline went down by P1 per liter, as did diesel and kerosene by P0.60 and P0.65 per liter respectively.

These resulted in year-to-date adjustments to stand at a total net increase of P20.95 per liter for gasoline, P17.50 per liter for diesel, and P15.09 per liter for kerosene.

The Department of Energy said at its monitoring report crude prices declined after the US increased its inventory by 3.29million barrels to 434.1 million barrels for the week ending October 29.

A slowdown in the Chinese economy eased the market tightness and rising cases in China impacted on demand.

DOE said the decision of the Organization of Petroleum Exporting Countries and its allies to stick to its decision of increasing the December output by  400,000 barrels per day also affected oil prices.

Possibilities of the US releasing  crude oil stocks from its strategic petroleum reserves to augment crude oil supply is seen to further impact world oil prices.

Gasoline demand in Asia remained strong supported by overall ongoing recovery in the region amid easing of travel restrictions and movement control order.

DOE also said India continues to lead the recovery in gasoline market with gasoline demand already reaching pre-COVID levels while Malaysia’s demand is expected to hit pre-pandemic level soon.

Indonesian gasoline demand is also expected to be higher for November.

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