Oil firms are expected to slash pump prices by almost P3 per liter for gasoline, the Department of Energy said.
DOE-Oil Industry Management Bureau Director Rino Abad said diesel prices are also seen to go down by P1.82 per liter and kerosene by P1.80 per liter.
In its fuel price forecast for the September 6 to 12 trading week, Unioil said diesel prices may decrease by P1.50 to P1.70 per liter and gasoline prices by P2.50 to P2.70 per liter.
Abad attributed the expected rollback next week to the COVID-19 lockdown measures in China and statements of the United States and European central banks signaling more aggressive interest rate hikes to temper inflation.
Jetti Petroleum president Leo Bellas told ABS-CBN News it was hard to tell if the price rollbacks will continue over time.
“That is hard to answer. It seems the prices will see-saw, depending on the decisions of the Organization of the Petroleum Exporting Countries. We are also seeing recession fears,” Bellas said.
Traders are looking at how OPEC and allies such as Russia will decide on production cuts during its meeting on Sept. 5.
For his part, Albay Rep. Joey Salceda said he expects “a rollback or net reduction in prices every month for the rest of the year” for oil prices.
Salceda, chair of the House committee on ways and means, said: “The supply deficit of global oil is narrowing, and supply is increasing at a faster rate than demand.”
“The Filipino people, who are net buyers of oil from the world market, can expect some slight to moderate relief on oil prices as global oil supply-demand imbalance appears to be easing. July oil supply deficit narrowed to around 600,000 stock tank barrels, the lowest for the whole of 2022. Oil supply in July also grew by 0.28 percent but demand grew by just 0.07 percent,” the lawmaker said.
“With the US Federal Reserve maintaining its policy of gradual rate hikes, and with domestic pressure among US leaders to increase oil supply, as well as global adjustment to a stalemate in Ukraine, I expect net price reductions on oil prices every month for the rest of 2022. Oil futures data appears to say so, as well,” he added.
On Aug. 30, oil companies raised pump prices by P1.40 per liter for gasoline and P6.10 for diesel and kerosene.
DOE said these resulted in total year-to-date adjustments at a net increase of P19.55 per liter for gasoline, P37.80 per liter for diesel, and P33.20 per liter for kerosene.
