OIL consumers will experience a part of ease next week as an anticipated rollback in diesel and kerosene prices and a price hike for gasoline are on the roll. This is the fifth time in a series of cost adjustments in the past two months for the fuel industry.
It is estimated that the price of diesel will be reduced by P0.45 to P0.65 per liter; and kerosene prices will be slashed by P0.50 to P0.70 per liter, while gasoline prices will climb by P0.55 to P0.75 per liter for RON92 products; and P0.65 to P0.85 per liter for RON95 gasoline commodities.
The general price trend in the world market last week had been cost downtrend, but as of Friday (July 29) trading, international benchmark Brent crude significantly climbed back to $110 per barrel; while Dubai crude jumped to $102 per barrel anew – manifesting then that price hikes may reign at the pumps again in the weeks ahead.
National papers yesterday said oil firms will implement the calculated price adjustments on Tuesday, Aug. 2, as part of their routine when it comes to cost movements in the deregulated downstream oil industry.
Accordingly, the pricing adjustment reference is anchored on the Mean of Platts Singapore (MOPS), and they also factor in foreign exchange (forex) rate fluctuations as well as market premiums, biofuel costs and other charges.
An added price relief in consumer-budgets will be the projected price reductions for liquefied petroleum gas (LPG) to the tune of more than P2.00 per kilogram; which is the preferred cooking fuel in Filipino households.
LPG prices are adjusted based on the cost swings of international contract prices (CP) that are benchmarked on Saudi Aramco, the pricing reference for Asian markets.
Prior to the next round of oil price swings at the pumps, a monitoring report of the Department of Energy (DOE) showed that domestic oil prices still incurred net increases of P32.95 per liter for diesel; P28.05 per liter for kerosene; and P18.90 per liter for gasoline products. (with reports from Myrna M. Velasco / MB)
