CONSUMERS’ pockets can finally gain substantial relief next week, as petroleum products at the pumps will be on massive rollback, according to the oil companies.
Based on the industry’s calculations as anchored on the Mean of Platts Singapore (MOPS), diesel prices will be reduced by as much as P6.20 to P6.40 per liter; while kerosene prices will go down by P6.00 to P6.20 per liter.
The price of gasoline will also be on significant downtrend of P5.70 to P5.90 per liter for RON92 gasoline; and P5.20 to P5.40 per liter for RON95 gasoline products.
The oil firms will implement their price adjustments on Tuesday (July 12); and while the initial calculations are of massive scale, it has been indicated that the final price cuts may still end up leaner because of the continuing devaluation of the Philippine peso versus the US dollar.
Last week, the local currency already touched at P56.06 against the greenback. By far, the falling value of the peso will impact adversely on the country’s inherent option of oil importation to meet Filipino consumers’ fuel needs.
On price adjustments since the start of the year, a monitoring report of the Department of Energy (DOE), showed that local fuel prices still incurred net increases of P42.90 per liter for diesel; P36.35 per liter for kerosene; and P30.00 per liter for gasoline.
As of Thursday (July 7) trading, international benchmark Brent crude collapsed to as low as $104 per barrel. But that was just a very temporary decline, because by Friday (July 8), prices climbed back anew to $107 per barrel level.
The Dubai crude, which is the pricing reference applied by Asian oil markets, likewise plummeted to $102 per barrel as of Friday (July 8) trading from a higher base of $107 to $108 per barrel the week before.
Global market watchers, nevertheless, highlighted that the softening of prices in oil markets may just be very short-lived and was just an outcome of widespread profit-taking resorted to by some market participants who have been panicking on probabilities of economic recession.
Experts noted that oil markets remained perturbed with concerns of ‘extreme tight supply’; hence, there is higher likelihood that prices will remain high in the weeks and months ahead.
Among the factors that will influence international oil prices in the days ahead would be the Russian court-enforced 30-day closure of the Caspian pipeline consortium that has been the main conduit for the supply of Kazakhstan oil to the global markets; and the new sanctions imposed by the United States to Chinese and Emirati buyers of Iranian oil.
Amid highly volatile oil prices, the remedy being explored by the Marcos administration for the domestic petroleum market will be to infuse continued subsidy to marginal consumers in the public transport and agricultural sectors. (with reports from Myrna M. Velasco/ Manila Bulletin)
